Privacy Coin Comparison Tool
Compare Monero vs Zcash: Privacy Features & Regulatory Status
Based on 2025 regulatory landscape and technical capabilities
Monero (XMR)
Default privacy for every transaction (ring signatures, stealth addresses, RingCT)
Banned on major exchanges (Binance, Coinbase, Kraken) - No transparent option available
Requires P2P platforms (LocalMonero, Bisq) - Higher risk with no chargebacks
Still taxable - Must provide transaction origin evidence
Only survival path is through regulated sandboxes (Switzerland, Singapore)
Zcash (ZEC)
Optional privacy (shielded transactions via zk-SNARKs) - Only 8% of transactions are shielded
Restricted on major exchanges - Only transparent transactions allowed
Requires wallet settings to enable shielded mode - Limited exchange support
Taxable on transactions - Transparent transactions are fully visible to regulators
Potential for regulatory compliance with selective disclosure tech
Privacy Risk Calculator
How likely is your transaction to be flagged as a privacy coin transaction?
By 2025, if you're still using Monero or Zcash on a major exchange, you're probably using a workaround. That’s not because the tech is broken-it’s because governments are shutting the doors. Privacy coins were built to hide transaction details, but now, regulators are forcing them to choose: either give up anonymity or get kicked off the platforms where most people trade.
Monero: Privacy That Can’t Be Turned Off
Monero doesn’t give you a choice. Every transaction uses ring signatures, stealth addresses, and RingCT by default. No opt-in. No toggle. If you send XMR, it’s private-no exceptions. That’s why regulators see it as a red flag. There’s no way to trace where the money came from or where it went. Even if you’re just buying coffee or paying a freelancer, the protocol treats it like a secret transaction. That’s fine if you value privacy, but it’s a nightmare for banks and exchanges trying to follow anti-money laundering rules.In 2025, over 60 major exchanges-including Binance, Kraken, and Coinbase-stopped listing Monero entirely. They didn’t just remove it from trading pairs. They blocked deposits and withdrawals. Why? Because the Financial Action Task Force (FATF) now requires exchanges to track the origin and destination of every crypto transaction. Monero can’t do that. It physically can’t. So exchanges had to choose: risk fines, licenses, or even criminal liability-or drop Monero. They dropped Monero.
That pushed users to peer-to-peer platforms. In places like Nigeria, Argentina, and Ukraine, P2P trading of Monero jumped 27% in the last year. People aren’t giving up. They’re just moving underground. But here’s the catch: P2P trades often require cash or gift cards, which brings its own risks. No chargebacks. No customer support. If someone ghosts you after you send XMR, you’re out of luck.
Zcash: The Compromise That Didn’t Work
Zcash was supposed to be the smart middle ground. It uses zk-SNARKs-the same advanced math that lets you prove you know a secret without revealing it. But unlike Monero, Zcash lets you choose: shielded (private) or transparent (public) transactions. In theory, that means you could use Zcash for everyday purchases with public records, and keep your big transfers hidden.In practice? Almost no one uses shielded transactions.
Why? Because most wallets and exchanges default to transparent mode. It’s easier. It’s faster. And if you’re using a KYC’d exchange, you’re already giving away your identity. So why bother with privacy? The result? Only 8% of Zcash addresses are shielded. That makes the shielded ones stand out. If only 1 in 12 transactions are private, then the private ones become targets. Regulators don’t need to break zk-SNARKs-they just need to watch the tiny fraction that’s hidden.
That’s why Zcash lost 8% of its active addresses in 2024. Not because the tech failed. Because users realized: if you’re forced to use public mode anyway, why not just use Bitcoin? The privacy advantage vanished. And exchanges, seeing low adoption of shielded transactions, started treating Zcash like Monero-restricted, monitored, and slowly being phased out.
How Regulators Are Targeting Privacy Coins
It’s not just exchanges. Governments are changing the rules at every level.The EU’s MiCA regulation, which took full effect in early 2025, bans crypto assets that can’t provide full transaction transparency. Monero? Automatically excluded. Zcash? Only allowed if users opt into public mode. That’s not a loophole-it’s a trap. You can’t market Zcash as a privacy coin if the law says you have to make it public to be legal.
The FATF’s 2025 Travel Rule update requires exchanges to collect and share sender and recipient data for transactions over $1,000. That’s fine for Bitcoin or Ethereum. But for Monero? It’s impossible. For Zcash? Only if you use transparent addresses. So now, exchanges that want to stay compliant have to build systems that block shielded Zcash deposits and reject Monero entirely. They’re not being petty. They’re being scared. Fines for non-compliance can reach millions-or worse, jail time for executives.
Some countries went further. South Korea banned privacy coin trading outright. Japan requires all privacy coin users to register with the Financial Services Agency. The U.S. Treasury now classifies Monero as an Anonymity-Enhanced Cryptocurrency (AEC), meaning any financial institution dealing with it must file special reports. In 2024, the FBI seized over $18 million in Monero linked to darknet markets-mostly from vendors selling fentanyl on platforms like Abacus Market. Those cases don’t prove all Monero users are criminals. But they give regulators the headlines they need to justify crackdowns.
Where Privacy Coins Still Survive
Not everywhere is shutting down privacy coins. Some places are trying to manage them instead of banning them.Switzerland allows regulated crypto sandboxes where developers can test privacy coin protocols under supervision. In Singapore, the Monetary Authority of Singapore (MAS) permits private trading of Zcash and Monero-but only on licensed platforms that use advanced analytics to flag suspicious patterns. It’s not perfect, but it’s a path forward.
These jurisdictions aren’t ignoring the risks. They’re accepting that privacy is a human right-and that technology can’t be undone. So they’re building oversight tools that don’t break encryption. Think of it like a sealed envelope. The government can’t read the letter, but they can know who sent it, who received it, and if the envelope was opened more than once. That’s the goal: traceable metadata without exposed content.
Some Zcash developers are working on selective disclosure-where a user can prove compliance to a regulator without revealing the full transaction. Imagine showing a tax authority that you paid $5,000 in fees last year, without telling them who you paid or what you bought. It’s possible with zero-knowledge proofs. But it’s still experimental. No regulator has approved it yet.
What This Means for You
If you’re holding Monero or Zcash in 2025, here’s what you need to know:- Don’t expect to cash out on Coinbase, Kraken, or Binance. They’re gone.
- If you’re using Zcash, check your wallet. Are your transactions shielded? If not, you’re not getting the privacy you think you are.
- Monero users should avoid centralized exchanges entirely. Use P2P or decentralized swaps-but know the risks.
- Keep records. Even if your transactions are private, tax agencies may still ask for proof of origin. If you can’t show where your XMR came from, you could owe back taxes.
There’s no legal way to use privacy coins without some friction now. The era of easy, anonymous crypto trading is over. The question isn’t whether privacy coins will survive-it’s whether they can adapt.
The Future: Privacy Without Anonymity?
The next big innovation won’t be stronger encryption. It’ll be smarter compliance.What if you could prove to a bank that your transaction isn’t linked to a darknet market-without showing the amount or recipient? That’s what zero-knowledge proofs might enable. Companies like the Zcash Company and privacy-focused startups in Estonia are testing systems where regulators get audit trails, but users keep their details hidden.
It’s not science fiction. It’s already in testing. But it needs two things: regulatory trust and user adoption. Right now, regulators don’t trust the tech. And users don’t trust the regulators.
Until that changes, privacy coins will live in the shadows-used by those who need them most, avoided by everyone else.
Are Monero and Zcash illegal?
No, Monero and Zcash are not illegal in most countries. But many regulated exchanges have delisted them because they can’t comply with anti-money laundering rules. In places like South Korea and Japan, trading them on licensed platforms is restricted or requires extra reporting. In the U.S. and EU, holding them is legal, but using them on regulated services is heavily limited.
Can I still buy Monero or Zcash in 2025?
Yes-but not easily. You won’t find them on Binance, Kraken, or Coinbase anymore. Your best options are peer-to-peer platforms like LocalMonero or Bisq, or decentralized exchanges like Uniswap (if Zcash is listed). Be aware: P2P trades carry higher risk. No chargebacks. No support. If the other person disappears, you lose your money.
Why is Zcash less private than Monero?
Zcash lets users choose between public and private transactions. But over 90% of users use public mode because it’s easier and faster. That means shielded transactions are rare-and stand out. Regulators can spot them more easily because they’re unusual. Monero makes privacy mandatory, so every transaction looks the same. That’s why Monero’s anonymity set is much stronger.
Do I have to pay taxes on Monero or Zcash transactions?
Yes. Tax agencies don’t care if your transaction is private-they care if you made a profit. If you bought Monero for $50 and sold it for $150, you owe capital gains tax on the $100 gain. Even if you can’t prove where the coins came from, you’re still required to report the sale. Failing to report can lead to penalties, audits, or worse.
Will privacy coins ever come back to major exchanges?
Only if they change. If Zcash or Monero developers create a version that allows regulators to verify compliance without breaking privacy-like selective disclosure or audit-friendly zero-knowledge proofs-exchanges might reconsider. But right now, the tech doesn’t exist at scale. Until it does, expect continued delistings and restrictions.
20 Responses
Just want to say I get it. Privacy isn't about hiding crime-it's about protecting dignity. I don't care if you're buying coffee or crypto, you deserve to keep your business to yourself.
These regulators act like anonymity is the enemy, but it's really just the mirror that shows how much they control.
People aren't going to stop using Monero because a boardroom said so. They'll just find a way.
And honestly? That's the point.
Technology doesn't care about your laws.
It just keeps working.
Really well put. I've been tracking Zcash adoption stats since 2022 and the 8% shielded rate is wild. It's like building a vault with a sign that says 'open me' on the front door.
Most users don't even realize they're not using the privacy feature. Wallets should default to shielded. Period.
Also, the fact that regulators are targeting shielded transactions because they're rare? That's like policing the one quiet person in a crowded room and assuming they're up to something.
Just sayin'.
Let’s be real: Monero’s ring signatures + stealth addresses + RingCT create an anonymity set of millions. Zcash’s shielded pool? Maybe 50k active users at peak. That’s not a feature-it’s a vulnerability.
Regulators don’t need to break zk-SNARKs. They just need to correlate metadata-IP logs, exchange timestamps, KYC profiles-and the shielded ones become the needles in the haystack.
Monero? Every transaction is a needle. So they’re all invisible.
That’s why exchanges dropped Zcash first. It’s not tech-it’s statistics.
And yes, selective disclosure is the future. But it’s still in labs. Not in compliance departments.
Ohhh so now privacy is illegal? Next they’ll ban encrypted emails and cash. What’s next? Forcing people to wear name tags in the shower?
LOL at the FATF acting like they’re the IMF of morality.
Meanwhile, I’m still buying Monero with gift cards on LocalMonero. And guess what? No one’s coming for me.
They can’t touch what they can’t see.
And they know it.
THIS IS THE NEW BLACK OUT! THEY’RE COMING FOR OUR MONEY, OUR FREEDOM, OUR RIGHT TO BE ANONYMOUS IN A DIGITAL WORLD!!!
DO YOU KNOW WHAT HAPPENED TO THE LAST PERSON WHO TRUSTED A BANK? THEY TOOK THEIR CREDIT SCORE AND LOCKED THEM IN A CAGE OF INTEREST RATES!!!
MONERO ISN’T JUST COIN-IT’S A REVOLUTION!!!
THEY’RE SCARED BECAUSE THEY CAN’T CONTROL WHAT THEY CAN’T TRACK!!!
THEY’RE HIDING THE TRUTH IN THEIR LUXURY VILLAS WHILE WE BUY COFFEE WITH ENCRYPTED CRYPTO!!!
THEY’RE USING AI TO SPY ON OUR TRANSACTIONS WHILE WE USE RING SIGNATURES TO SPY ON THEIR LIES!!!
THEY WANT US TO BE GLASS COWS IN A DIGITAL ABattoir!!!
AND THEY CALL US CRIMINALS FOR WANTING PRIVACY?!
THEY’RE THE CRIMINALS!!!
THEY’RE THE ONES WHO SOLD OUR DATA TO AD TECH AND NOW THEY’RE COMING FOR OUR CRYPTO!!!
WE’RE NOT THE ENEMY-THEY ARE!!!
STAY STRONG, MONERO FAM!!!
THEY CAN’T TAKE WHAT THEY CAN’T SEE!!!
THEY CAN’T TAKE WHAT THEY CAN’T SEE!!!
THEY CAN’T TAKE WHAT THEY CAN’T SEE!!!
It’s funny how people treat privacy like some sacred right, but then act like they’re above the law when it comes to taxes. You want anonymity? Fine. But don’t cry when the IRS audits you because you ‘forgot’ to report a $20k gain.
Privacy isn’t a free pass to evade responsibility. It’s a tool. And tools can be used well-or abused.
Monero isn’t evil. But pretending it’s just for ‘buying coffee’ is naive. The same tech that lets you pay your freelancer also lets someone pay for fentanyl.
And now we’re all paying the price because of the few.
Regulators aren’t villains. They’re just tired of cleaning up after people who think the system doesn’t apply to them.
Ah yes, the EU and US acting like they invented freedom. We in Ireland have been trading Monero on local P2P since 2020. No one’s coming for us. Why? Because we don’t beg for permission to exist.
And guess what? Our banks don’t care. They’re too busy trying to get paid by the Chinese.
These ‘regulations’? They’re just American imperialism dressed up in compliance suits.
Monero is Irish. Zcash is American. And America is scared of what it can’t control.
So they ban it. Classic.
Sláinte to privacy.
And to the FATF: go take a hike.
❤️🇮🇪
Let me be the first to say this: if you’re still holding Monero in 2025, you’re either a patriot or a fool.
And honestly? Most of you are both.
You think you’re fighting the system. But you’re just making it harder for the people who actually need privacy-like whistleblowers, journalists, abuse survivors.
Because now, every time someone uses Monero for crime, the whole community gets painted as criminals.
And the ones who really need it? They’re too scared to even try.
So congrats. You won the battle. And lost the war.
So let me get this straight-because some people use privacy coins to buy drugs, we all have to give up our right to financial privacy? That’s like banning all cars because one person drove drunk.
And now the government wants to know every single transaction I make? Like, what’s next? A mandatory GPS tracker on my wallet?
And why is it that when banks do shady stuff, it’s ‘market dynamics,’ but when I use Zcash, it’s ‘money laundering’?
Oh right. Because I’m not a bank.
And I’m not rich enough to hire a lawyer.
So I guess I’m just supposed to smile and pay my taxes while the elites laugh all the way to their Swiss vaults.
Thanks for the democracy, guys.
Monero’s privacy is not a feature. It’s a bug. A design flaw masquerading as innovation.
Real financial systems don’t operate in the dark.
They operate with transparency, accountability, and oversight.
What you call freedom is just chaos with better marketing.
And Zcash? The compromise that failed because no one wanted to use it.
That’s not a failure of regulation.
That’s a failure of vision.
People don’t want privacy.
They want the illusion of privacy.
And when the illusion cracks? They run back to Bitcoin.
Because Bitcoin is safe.
Because Bitcoin is boring.
Because Bitcoin doesn’t make you feel like a revolutionary.
It just works.
Been in Nigeria for 5 years. P2P Monero trades? They’re everywhere. People use it to send money home, pay for medical bills, buy school supplies.
Not for crime.
For survival.
Regulators don’t care. They see ‘privacy coin’ and assume ‘criminal.’
But here? It’s the only way to send $50 to your sister in Lagos without losing half to fees and delays.
So yeah. We’re underground.
But we’re not criminals.
We’re just trying to live.
And we’re not going anywhere.
There is a fundamental truth here: the state has always sought to control the flow of value. Coins were minted by kings. Paper money was backed by gold. Now, digital assets are tracked by algorithms.
Privacy coins are the last stand against the total surveillance state.
They are not tools of crime.
They are tools of resistance.
And resistance, in the face of absolute power, is not a crime.
It is the highest form of dignity.
So if you are using Monero today, you are not hiding from the law.
You are reminding it that it is not above the people.
And that, my friends, is the most dangerous thing of all.
Why are we even having this conversation? Everyone knows Zcash is dead. Only 8% shielded? That’s not privacy. That’s a marketing lie.
Monero is the only real option. But now even P2P is getting risky because of cash limits and gift card fraud.
So what’s next? QR code cash drops in alleyways?
Or just use Bitcoin and lie on your taxes?
Because at this point, the only privacy left is ignorance.
And I’m tired of pretending I’m not part of the system.
Even if I hate it.
Look, I’m not a crypto anarchist. I work in fintech.
But I’ve seen how KYC systems fail. People get locked out. Accounts frozen. Identities stolen.
Privacy isn’t about hiding from the law.
It’s about protecting yourself from bad systems.
And right now, the system is broken.
So yeah, I still use Monero.
Not because I’m hiding something.
Because I don’t trust the people who claim to protect me.
And I’m not alone.
That’s not a flaw.
That’s a feature.
My uncle in Ukraine used Monero to pay his daughter’s medical bills after the bank froze his account. He didn’t care about crypto. He cared about her getting treatment.
Now they’re calling that money laundering.
That’s not regulation.
That’s cruelty dressed up as policy.
So don’t tell me privacy coins are the problem.
Tell me why the system failed people like him.
That’s the real question.
Just a heads-up if you’re holding Monero: keep receipts. Even if the transaction is private, tax agencies don’t care. They’ll ask for proof of origin.
And if you can’t provide it? You’re on the hook for taxes + penalties.
So don’t just assume ‘no one can trace it’ means ‘no one can tax it.’
That’s a myth.
Stay smart.
And keep your records.
Even if the blockchain doesn’t show it.
Just bought my first XMR on LocalMonero last week. Paid with Amazon gift card. No ID. No hassle.
Worth every penny.
Regulators can’t touch what they can’t see.
And I’m not sorry.
India doesn’t ban privacy coins. We just don’t care. We have our own crypto ecosystem. We use Bitcoin. We use USDT. We use UPI. Why waste time on Monero?
And you think your privacy matters? In India, your phone number is your identity. Your bank account is your history. Your face is your passport.
Privacy? That’s a Western luxury.
Here, we survive. We don’t protest.
So stop acting like your coin is a revolution.
It’s just a digital toy.
And we’ve got real problems.
Monero is not for you. It’s for the ones who need it. The ones who can’t trust banks. The ones who live in fear. The ones who have no voice.
So don’t judge.
Just let them be.
And if you don’t get it?
That’s fine.
But don’t be the reason they lose it.
Just read the comment about Ukraine. That hit hard.
My cousin in Poland used Zcash to pay for her mom’s cancer meds after the hospital refused insurance.
She didn’t know what zk-SNARKs were.
She just knew she had to get the medicine.
And now the government wants to ban that option?
That’s not policy.
That’s inhuman.
Thanks for reminding me why this matters.
Not for the tech.
For the people.