"It also makes the NYSDFS the first regulatory agency in the world to supervise Zcash, reaffirming their position as the leading financial regulator in the area of digital assets".
The Gemini exchange will begin to accept deposits of Zcash on May 19.
He added that an aspect of the Zcash's appeal is a privacy-protecting feature which enables different parties to engage in trade without knowing each other.
To offer the much touted privacy, Zcash makes use of both shielded addresses, which offer full control, and unshielded addresses, which offer a lower degree of protection.
In addition to the digital currency having a daily trading volume of $32.4 million, the zk-snarks technology has been added to a lot of open source projects, including Quorum - originally created by J.P. Morgan Chase and Co.More news: Fulham take a step closer to EPL promotion
The Gemini exchange has won full approval from the New York Department of Financial Services to include Zcash. Initially, the exchange will "only support withdrawals to unshielded addresses", but the company is "working to support withdrawals to shielded addresses in the future". The addition of ZCash is of particular significance due to Gemini being the world's first licensed exchange to offer the privacy coin, but also because privacy coins have faced scrutiny over criminals potentially abusing the anonymous nature of the coin.
Snubbing that trend, Zcash founding member and CEO Bryce "Zooko" Wilcox posted a photo of Zcash's price as it surged on the Gemini announcement. However, shielded addresses provide a high level of privacy for users, as their balance and transaction balances are made private on the blockchain. In that case, the BCH price substantially increased on other exchanges prior to Coinbase's announcement, which led to justifiable concerns that exchange employees were privy to and traded based on information regarding the BCH announcement. The lengthy procedure included a detailed report on Gemini's action plan to deal with risks pertaining to the currency, as well as a brief overview of the Zcash protocol.
"Part of the reason a coin like Zcash has a smaller market cap is because people are not sure if regulators will ever get comfortable with this type of technology".