ZKSNACKS Coin (ZKS) to Halt Coinjoin Coordination Services from June 1: What Crypto Investors Need to Know

• ZKSNACKS, the company behind the Wasabi Wallet, has announced it will discontinue its Coinjoin coordination service from June 1, 2024.
• The decision was made due to regulatory uncertainty, but the Wasabi Wallet will continue to function as a regular Bitcoin wallet.
• This move will impact users of wallet clients that connect to the zkSNACKs coordinator, including Trezor Suite and BTCPayServer.

ZKSNACKS discontinues its Coinjoin coordination service amid regulatory uncertainty, impacting Bitcoin privacy and users of wallet clients like Trezor Suite and BTCPayServer.

ZKSNACKS Shuts Down Coinjoin Coordination Service

ZKSNACKS, the company pioneering the development of the Wasabi wallet, has announced it is shutting down its Coinjoin coordination service from June 1, 2024. The decision was made following thoughtful considerations, with regulatory uncertainty cited as the main reason for discontinuing the privacy-focused service.

Impact on Wasabi Wallet and Other Wallet Clients

Despite the discontinuation of the Coinjoin service, ZKSNACKS assured users that the Wasabi Wallet will continue functioning as a regular Bitcoin wallet. However, the firm highlighted that the nature of the Bitcoin blockchain prevents users from obtaining complete privacy without Coinjoins. This move will notably impact users of wallet clients that connect to the zkSNACKs coordinator, including Trezor Suite and BTCPayServer.

Wasabi Wallet’s Inherent Privacy Capabilities

zkSNACKs emphasized Wasabi Wallet’s inherent privacy capabilities based on a filtering architecture on its client side, Tor integration, and custom coin selection functionalities. Despite the discontinuation of Coinjoin, zkSNACKs noted it would maintain the protocol. As an open-source solution, users can contribute, open new issues, submit pull requests, or even fork the Wasabi Wallet.

Regulatory Challenges for Cryptocurrency Privacy Solutions

The decision to discontinue the Coinjoin privacy solution comes amid ongoing litigation between the U.S. Department of Justice (DOJ) and the foremost cryptocurrency privacy solution, Tornado Cash. The DOJ recently filed an opposition to Tornado Cash’s co-founder’s motion asking the court to dismiss the money laundering, sanctions violations, and other charges labeled against him.

Conclusion

The discontinuation of the Coinjoin service by ZKSNACKS underscores the growing regulatory challenges facing cryptocurrency privacy solutions. While the Wasabi Wallet will continue to function as a regular Bitcoin wallet, the move highlights the increasing scrutiny of privacy-focused services in the crypto space and the potential impacts on users and other wallet clients.