This is very important to know because the protocol does not enforce this restriction. Moreover, by default, shielded wallets will privilege sending from shielded notes.

Your funds will be LOCKED.

Binance receives the funds but will not credit your account. You will have to open a support ticket and wait for a refund. This can take up to 30 business days while your funds are unavailable.

Here's the workflow that I personally use. Though I cannot guarantee it works for everyone.

Setup

• Create one account for all the exchanges you work with (not one per exchange);
• Make a backup of the seed and put it in a safe place;
• Assign an index to each exchange. For example, Binance could be 1, Kraken 2, etc.

Deposits

For deposits, you must make sure your funds come from a transparent address.

• With the "Exchange" account selected, use the Keytool:

  1. Refresh to populate the list
  2. Expand the address at the index you want
  3. Press "+" to create a new account. Call it "Binance" for example.

• Make a payment to the "Binance" account transparent address;
• Shielded inputs is highly recommended;
• Wait for 3 or more confirmations;
• Switch to the "Binance" account
• Make a deposit to the exchange address. Check that it is only using transparent inputs. If you did the previous step correctly, the temporary account only has transparent funds. Otherwise, you can use the custom send option and deselect the Sapling and Orchard pools.

Withdrawals

• Do the same as before, but send to the temporary account;
• Then send from the temporary account to your main account with a shielded destination address.

Cleanup

Delete the temporary account if you want.

If you only perform transparent transactions on an Exchange account, there is no need to wait for synchronization. Therefore you can always quickly recreate it when needed.

Conclusion

Following this workflow ensures that each exchange has a different unlinkable transparent address.