Horizen, known for its layer 0 blockchain technology, is making a strategic shift away from being labeled as a privacy coin, a move influenced by intensifying global regulatory scrutiny. This decision marks a significant pivot in response to the evolving regulatory landscape in the cryptocurrency world.
The change in Horizen’s direction follows the tightening grip of regulators on privacy coins. Notably, the crypto exchange Huobi took a major step by delisting several privacy coins in September, aligning with regulations across various jurisdictions. Additionally, the European Banking Authority’s draft guidance in March threw a spotlight on the anti-money laundering risks tied to these tokens.
In a tweet, Horizen clarified, “Zen will no longer be considered a privacy coin after the deprecation of the mainchain shielded pools.” This move is also a part of their effort to ensure ZEN remains accessible to its global user base through various exchange partnerships.
Currently, the token is seeing some market movement, trading at $7.09. It’s navigating through liquidity challenges on major platforms like Binance and Coinbase, as per CoinMarketCap data.
Backing Horizen is the crypto hedge fund Grayscale’s Horizen Trust, boasting a value of approximately $4.3 million, according to CoinGlass. Grayscale’s connection to CoinDesk as a sister company under Digital Currency Group adds another layer to Horizen’s evolving narrative in the blockchain space.