Grayscale: Privacy Tokens Like ZEC Can Coexist with Compliance, Actively Promoting Conversion of ZEC Trust to ETF

Odaily News At the Consensus conference in Hong Kong, Grayscale's Chief Legal Officer, Craig Salm, discussed how privacy-preserving assets like Zcash (ZEC) can achieve selective disclosure, maintaining confidentiality while meeting tax and regulatory obligations. He believes innovation and compliance can coexist. Craig Salm stated in his speech: "If you have a business need, such as wanting to make a large payment to a supplier but not wanting other companies or competitors to see it, which could expose your business information, you would want that transaction to remain private. Paying with Bitcoin doesn't necessarily achieve this because the blockchain is transparent. We've all seen accounts on Platform X dedicated to tracking on-chain transactions. So you can imagine scenarios where this need exists. The most interesting aspect of privacy-preserving tokens like Zcash is 'selective disclosure'—you can choose to disclose information to a specific party, such as proving to the IRS that you've paid your taxes correctly, while maintaining privacy in daily commercial or personal transactions. Therefore, we believe this is a very interesting form of currency. We already have a substantial Zcash trust, and we are actively working to convert it into an ETF, just as we have done for several other products."