What’s behind the surge in privacy tokens as the rest of the market weakens?

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Zcash and other privacy tokens are rallying against a weaker market as regulatory pressure, delistings and AML rules reshape this niche sector.

Privacy tokens, such as Zcash, have posted gains, while the overall crypto market cap and Bitcoin have dropped sharply.

The rally is happening against a tightening policy backdrop with FATF pressure, new EU AML rules and a growing list of privacy coin delistings.

Sanctions cases and prosecutions involving mixers and wallets have raised questions about the line between infrastructure and money transmission, pushing compliance teams toward cautious de-risking.

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