Monero vs Zcash: what is the difference?

Monero vs Zcash is the best-known comparison among privacy coins. Both are cryptocurrencies built to hide who paid whom and how much, but they make opposite choices. Monero switches privacy on for everyone, all the time. Zcash makes it a feature that each user can choose to use.

What is the difference in privacy between Monero and Zcash?

The Monero project says every user is anonymous by default. It combines three tools: ring signatures mix the real sender with decoys, stealth addresses give each payment a one-time destination, and RingCT hides the amount. Because every transfer looks alike, the project argues every coin is interchangeable, so none can be marked as "tainted."

Zcash has two address types. Transparent addresses work much like bitcoin's public ledger. Shielded addresses hide the sender, receiver and amount using zero-knowledge proofs, which let the network check a payment without seeing its details. Zcash holders can also share a viewing key, giving an auditor read-only access to a shielded address.

The trade-off is a matter of debate. Supporters of Monero say optional privacy leaves too many users exposed, since anyone who sticks to transparent addresses can be followed. Supporters of Zcash say choice and viewing keys make it easier to use with exchanges and auditors.

How do XMR and ZEC differ as coins?

• Launch. Monero launched in April 2014. Zcash launched on October 28, 2016.
• Supply. Zcash is capped at 21 million ZEC, and its block reward halves about every four years. Since May 2022 Monero has paid a permanent tail emission of 0.6 XMR per block, so new coins never stop.
• Mining. Both use proof of work. Monero's RandomX algorithm is designed to resist ASICs and run on consumer hardware, while Zcash mining is dominated by specialized ASIC machines.
• Development. Monero is developed by an open community whose core team is largely anonymous. Zcash is supported by a share of each block reward that funds grants, and by groups such as the Zcash Foundation.

More detail is in the guides on what is Monero and what is Zcash.

Are Monero and Zcash legal?

In most countries, simply holding either coin is not illegal. The pressure falls on exchanges and other regulated firms, which must follow anti-money-laundering rules.

Monero has been hit harder. Binance delisted it on February 20, 2024, and exchanges in South Korea and Australia dropped it under regulatory pressure. Zcash's optional transparency has kept it on more regulated platforms. As of October 2026, the Zcash site lists Coinbase, Gemini and Kraken among places that support ZEC.

That gap may narrow in Europe. The EU's Anti-Money Laundering Regulation, which applies from July 10, 2027, bars banks and crypto service providers from handling anonymity-enhancing coins, a category reported to cover both. The wider picture is in what is a privacy coin.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.