Arthur Hayes, the co-founder of BitMEX, has issued a strong warning to Zcash (ZEC) holders, advising them to withdraw their funds from centralized exchanges and prioritize self-custody of their assets. This recommendation comes amid increasing regulatory pressure on privacy-enhancing technologies within the cryptocurrency space.
Hayes emphasized that self-custody remains the safest option for privacy-oriented cryptocurrencies like Zcash, particularly during a time of heightened regulatory oversight and exchange vulnerabilities. In his advisory, Hayes specifically recommended that users enable Zcash's “shielded” feature. This function is designed to obscure transaction data and safeguard the identities of both senders and recipients, representing the core mission of Zcash to provide private and censorship-resistant financial transactions.
Market analysts have noted that keeping privacy coins on centralized exchanges presents multiple risks, including the potential for hacking incidents, sudden delistings, and regulatory freezes. As governments worldwide tighten their stance on anonymity-enhancing technologies, experts believe that ZEC could face increased scrutiny, similar to the challenges encountered by other privacy-focused tokens such as Monero.
ZEC Price Reacts to Growing Caution
Zcash is currently trading around $480, having recently retreated from highs above $700 experienced earlier in the month. The four-hour chart indicates a cooling of momentum following a parabolic rise in October. Technical indicators reflect this moderation, with the MACD showing a bearish trend at -11.61, suggesting fading buying pressure. The RSI hovers near 43, pointing to neutral-to-weak momentum. Analysts have identified potential support around the $450 region, with stronger resistance forming near $520.
Despite the recent price correction, some traders remain optimistic that Hayes’ comments could reinforce Zcash’s value proposition as one of the few remaining privacy coins with active developer support and on-chain utility. This sentiment suggests that the core principles of Zcash continue to resonate with a segment of the cryptocurrency market.
Rising Regulatory Risks for Privacy Coins
Hayes’ message arrives at a critical juncture, as regulators globally intensify their pressure on privacy-enhancing technologies. Several major cryptocurrency exchanges have already delisted privacy coins due to evolving compliance challenges. Consequently, the call for users to self-custody their digital assets has regained significant attention across the broader crypto community.
Arthur Hayes has consistently advocated for decentralization and robust user control over digital assets. His latest statement serves as a reiteration of his long-held belief that individuals should maintain direct control over their private keys and actively utilize tools that preserve financial privacy.