Zcash Foundation CEO Jack Gavigan claims that the necessary information to comply with the Crypto Travel Rule can be integrated into an anonymous Zcash transaction.
Zcash Foundation CEO Jack Gavigan
declared, which does not agree with the tough policy of regulators and legislators regarding anonymous cryptocurrencies. According to Gavigan, the authorities perceive anonymous cryptocurrencies as a tool for money laundering or terrorist financing.
Gavigan has written a brief overview of regulatory requirements and compliance for Zcash. He sees no significant difference between anonymous cryptocurrencies and traditional bank accounts in terms of compliance with know-your-customer (KYC) and anti-money laundering (AML) procedures.
“While the bank may not see where you got the cash from or what you spend it on, they still know who you are and can evaluate whether your deposits or transfers are “natural” for this type of client,” he explained.
Gavigan also observed that, in some ways, anonymous cryptocurrencies make it easier for their holders to comply with KYC and AML requirements. The CEO of the Zcash Foundation noted the rise in the rate of anonymous cryptocurrencies in recent times. He believes that their stable growth was due to the strong dynamics of the price of bitcoin.
“Supervisors can attach the necessary Crypto Travel Rule information to a secure Zcash transaction using an encrypted memo field, which is not possible with Bitcoin,” he said.
As a reminder, according to the requirements of the Crypto Travel Rule issued by the International Financial Action Task Force on Money Laundering (FATF), virtual asset service providers (VASPs) must disclose information about the parties involved in transactions in excess of $1,000.
Last year, Zcash founder Zuko Wilcox Zuko Wilcox suggested that the community abandon the Proof-of-Work (PoW) consensus method and move to Proof-of-Stake (PoS).
Source: Bits
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