Coinbase UK Customers Say Farewell to Zcash
Customers of Coinbase can expect to say goodbye to Zcash, a cryptocurrency known for its quasi-anonymous properties. The U.S.-based cryptocurrency exchange recently announced that it will no longer carry or offer the asset for purchase.
The Reign of Zcash – Coming to an End?
The good news is that support for the coin will only end for customers based in the United Kingdom, which means all other customers in America and abroad will likely continue to enjoy the benefits of Zcash. However, at press time, no explanation has been given for the sudden drop, and rumors are circulating online.
Some believe – given that the currency is semi-anonymous – that the currency has somehow come under “regulatory radar.” Not wanting to be entrenched in the ongoing fight over how crypto should be monitored or legislated, Coinbase could be trying to rid itself of any potential problems beforehand. Customers in the U.K. have until August 26 of this year to either move their coins to another platform or trade them for other money.
Any Zcash units unaccounted for by the August 26 deadline will be automatically converted into British pounds. Zcash wallets will be automatically reduced to “zero” before being wiped off Coinbase’s platform immediately.
The Zcash Foundation has issued a statement on the matter, explaining:
We have no additional knowledge beyond the public discussion. Of course, our hope is that Coinbase UK will be able to serve Zcash users again soon.
Electric Coin Company, the developer behind Zcash, recently took to Twitter to explain that Zcash was only being delisted from Coinbase. The message says that the currency is fully compatible with current UK financial laws, and that the coin has been well-received by virtually all other listing exchanges. It states:
Those affected by Coinbase UK issues: this is limited to Coinbase UK only. UK residents can still buy/ sell Zcash through CEX.IO. No other exchanges in the UK are affected. To pre-empt speculation, we confirm that Zcash is 100 percent compatible with UK regulations and KYC/ AML requirements.
While the company is saying that Zcash is “compatible” with all current financial laws within the U.K., speculation has arisen to suggest that perhaps it won’t be in the coming future. The Financial Conduct Authority (FCA) has recently proposed initiating a ban on all cryptocurrency-based products, suggesting that they are too vulnerable to prince swings and white-collar crime such as money laundering.
However, most laws show Zcash as being within bounds, even sharing many of the same properties as bitcoin, which is what likely got it listed on crypto exchanges in the first place.
Another Possible Reason
Crypto entrepreneur Alistair Milne says:
Delisting $ZEC was probably a pre-condition of Coinbase getting access to the UK’s ‘faster payments’ system back. It wasn’t a regulatory requirement, but a banking one.