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ZKSNACKS Shutting Down Coinjoin Service: Impact on Wasabi Wallet and Bitcoin Privacy

ZKSNACKS Shutting Down Coinjoin Service: Impact on Wasabi Wallet and Bitcoin Privacy

TL;DR

  • ZKSNACKS, the company behind Wasabi Wallet, will close its Coinjoin coordination service on June 1.
  • Wasabi Wallet will continue to function as a standard Bitcoin wallet, focusing on privacy features like client-side filtering and custom coin selection.
  • The decision is due to regulatory uncertainty, also affecting users of other wallets such as Trezor Suite and BTCPayServer.

ZKSNACKS announcement about the closure of its Coinjoin coordination service has shaken the cryptocurrency community.

The company, known for its pioneering development of the Wasabi Wallet, has stated that as of June 1, 2024, it will stop offering this crucial service for privacy in Bitcoin.

The decision not only affects Wasabi Wallet users, but also those who use other wallets such as Trezor Suite and BTCPayServer that connect to the zkSNACKs coordinator.

The company has mentioned that this measure is taken due to the regulatory uncertainty currently facing the cryptocurrency space.

Despite the closure of the Coinjoin service, Wasabi Wallet will continue to operate as a standard Bitcoin wallet.

Users will still be able to generate private keys to receive and send bitcoins, although the coin mixing feature will not be available.

The wallet will rely on its client-side filtering architecture, Tor integration, and custom coin selection to maintain high levels of privacy.

ZKSNACKS closes its Coinjoin service: Impact on Wasabi Wallet and privacy in Bitcoin

zkSNACKs statement highlights the importance of operating within a clear legal framework

Which is currently difficult to achieve given the regulatory ambiguity in several countries.

Although the decision has raised concerns among some privacy-conscious users, others see this as an opportunity for innovation and collaboration in the cryptocurrency space.

The company also underlines its commitment to open source, ensuring that Wasabi Wallet will continue to be maintained and updated by the community.

This allows users to contribute, propose improvements and ensure the continuity of the project beyond the direct participation of zkSNACKs.

At a time where privacy and regulation collide in the world of cryptocurrencies, the shutdown of zkSNACKs Coinjoin service is a reminder of the persistent challenges facing the industry.

However, it is also a testament to the spirit of collaboration and determination to find solutions that respect privacy and legality in equal measure.

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