Grayscale: Privacy tokens like ZEC can enable compliance and privacy to coexist, and are actively promoting the conversion of ZEC trusts into ETFs.

Odaily Planet Daily reports that at the Hong Kong Consensus conference, Grayscale Chief Legal Officer Craig Salm discussed how privacy-protecting assets like Zcash (ZEC) can achieve selective disclosure while meeting tax and regulatory obligations, maintaining confidentiality. He believes innovation and compliance can coexist. Craig Salm stated, “If you have business needs and want to pay large sums to suppliers but don’t want other companies or competitors to see, which could expose your business information, you would want this transaction to remain private. Paying with Bitcoin may not achieve this because the blockchain is transparent. We’ve seen on platforms like X that there are accounts dedicated to tracking on-chain transactions. So you can imagine scenarios where this need exists. With privacy coins like Zcash, the most interesting feature is ‘selective disclosure.’ You can choose to disclose information to certain parties—for example, proving to the IRS that you’ve paid your taxes correctly—while maintaining privacy in everyday business or personal transactions. Therefore, we think this is a very interesting form of currency. We already have a substantial Zcash trust and are working on converting it into an ETF, just as we have done with several other products.”