San Francisco based crypto exchange, Coinbase, will soon end support for privacy-focused cryptocurrency Zcash (ZEC) in the United Kingdom, according to an email they sent to customers.
The email which initially circulated on Twitter confirmed that from August 26, Coinbase customers in the U.K would no longer be able to hold a ZCash (ZEC) balance.
The exchange also provided alternative measures for customers holding the cryptocurrency, that is, to convert their assets to other Coinbase supported cryptocurrencies or move it to a hardware wallet or another exchange.
Notably, Coinbase did not provide any reasons regarding the decision to delist the cryptocurrency, a situation that led to fresh concerns by the community that Zcash (ZEC) is no longer regulatory compliant.
The privacy-focused cryptocurrency allows users to hide their details while sending their coins, a feature that is definitely not in line with the ongoing global regulatory efforts to make crypto transactions more transparent.
However, Electric Coin Company, the firm behind the ZCash (ZEC) cryptocurrency was quick to quash any claims that their cryptocurrency is not regulatory compliant, especially in the United Kingdom. The company said in a tweet following the Coinbase announcement,
“This [delisting] is limited to Coinbase UK only. UK residents can still buy/sell Zcash through CEX.io. No other exchanges in the UK affected. To pre-empt speculation, we confirm that Zcash is 100% compatible with UK regulations & KYC/AML requirements.”
Meanwhile, the delisting by Coinbase isn’t the first time that a crypto exchange is ending support for a cryptocurrency based on supposed regulatory issues. In May, Poloniex exchange stopped U.S customers from trading nine crypto tokens over concerns that these assets qualified as ‘securities’ under the nation’s regulatory framework.