ShapeShift Brings Back Zcash Privacy in $50K Grant Push

• Decentralized exchange ShapeShift restores support for Zcash shielded transactions.
• The move emphasizes cryptocurrency privacy amid regulatory pressures.

On October 9, 2025, decentralized platform ShapeShift announced the reinstatement of Zcash shielded transactions, cementing its privacy focus under its DAO framework. This integration was made possible through a $50,000 grant provided by the Zcash Community Grants program. The feature allows users to conduct private swaps across blockchains, including Bitcoin, Ethereum, and Arbitrum, using Zcash’s zero-knowledge proofs (ZK-proofs), which hide transaction details such as sender, receiver, and amount.

ShapeShift's decision reflects its commitment to bolstering privacy within a decentralized and community-governed environment. Having delisted privacy coins in 2020 due to regulatory concerns while still operating as a centralized entity, the platform has since transitioned into a DAO that excludes intermediaries and Know Your Customer (KYC) processes. This shift aligns with its advocacy for privacy in the digital economy.

The move comes amid growing regulatory scrutiny of privacy-focused cryptocurrencies. In Europe, expanded Anti-Money Laundering (AML) regulations slated for implementation by 2027 are expected to outlaw anonymous crypto accounts and privacy-preserving tokens like Zcash. These developments epitomize the ongoing tension between financial privacy and compliance.

Despite these challenges, privacy advocates assert that preserving anonymity is a core principle of cryptocurrencies. Privacy coins such as Zcash offer users the option to shield transactions while maintaining trust through advanced mechanisms, like zero-knowledge proofs. ShapeShift’s renewed support underscores resistance to regulatory pressures threatening financial privacy in the evolving digital landscape.

As of October 9, 2025, 16:08 UTC, Zcash (ZEC) is trading at $191.91, with a 15.17% change in the last 24 hours, according to CoinMarketCap.