Leading Bitcoin and cryptocurrency exchange Coinbase has announced that it will remove Zcash (ZEC) support for its UK customers on August 26, 2019. This sudden delisting decision came just after the British tax authority HM Revenue & Customs announced that it requested customer and transaction data from the cryptocurrency exchange. In an e-mail sent to Coinbase on Friday by UK users, Zcash was unable to hold and sell Zcash on the stock exchange from 26 August.
The announcement was first announced on August 9 by UK-based stock market users; The stock market announced to users that they could withdraw ZEC balances from Coinbase or convert them to another cryptocurrency that supports ZEC before the deadline. According to user e-mails, on August 26, all remaining balances on the platform will automatically be converted to GBP.
Coinbase’in sudden announcement without disclosure, allowing users to mask their addresses on Twitter at the discretion of confidentiality-based crypto money is not compatible with British KYC / AML regulations are expressed in the direction of concern. On August 6, HM Revenue & Customs sent a letter to Coinbase, eToro, and CEX.IO, which operates in the UK, and said that they requested customer data from three companies for tax collection purposes. Judging by the Twitter posts, the Zcash community seems to be joining the dots.
However, Electric Coin Company, the company behind Zcash, has suggested that Zcash is 100% compliant with UK regulations as well as its customer identification (KYC), anti-money laundering (AML) requirements. The company also stressed that users in the UK can buy and sell ZEC through the cryptocurrency exchange CEX.IO, adding that there are no other affected stock markets outside Coinbase. The Electric Coin Company said it cannot comment on the reason behind the distinction of crypto money.
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 affected. To pre-empt speculation, we confirm that Zcash is 100% compatible with UK regulations & KYC/AML requirements.
— Electric Coin Company (@ElectricCoinCo) August 9, 2019