A blockchain platform known for its foundational layer, Horizen, has made the decision to distance itself from being labeled as a privacy coin in response to growing regulatory scrutiny on a global scale.
This decision comes in the wave of mounting pressure faced by privacy coins within the regulatory landscape. Notably, Huobi, a prominent cryptocurrency exchange, took steps to delist several privacy coins in September, aiming to ensure compliance with regulations across various jurisdictions.
Additionally, in March, the European Banking Authority released preliminary guidelines that emphasized the potential risk of money laundering associated with such tokens.
In a Tweet, Horizen announced the removal of the privacy coin label for ZEN, stating that it will no longer be considered as such due to the depreciation of the primary blockchain’s shielded pools. The platform is actively engaged with its exchange partners to ensure continued accessibility of ZEC for its global user base.
At present, the ZEN token is being traded at a price of $7.04, experiencing a minor decline as its trading pairs encountered difficulties in maintaining liquidity on Binance and Coinbase. According to CoinMarketCap, the current market capitalization stands at $97 million with 2.9% drop.
It is worth noting that Horizen enjoys the support of Grayscale’s Horizen Trust, a cryptocurrency hedge fund, with an estimated value of approximately $4.3 million, as per CoinGlass.
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