Coinbase has made a statement to customers in the UK about canceling Zcash support (ZEC) since August 26, 2019. This happened a few days after Her Majesty’s Tax and Customs Board requested data on customers and transactions from the cryptocurrency exchange.
On August 9, exchange users from the UK were advised to withdraw their funds to ZEC or convert them to any other supported cryptocurrency. After August 26, all balances on the platform will be automatically converted into pounds sterling.
The lack of explanation from Coinbase has caused Twitter users concern. They decided that a confidentiality coin to mask addresses was delisted due to non-compliance with British KYC / AML rules.
According to anonymous sources, on August 6, the Office sent letters to Coinbase, eToro, and CEX.IO, which operate in the UK, asking them to provide customer data for tax collection.
The Zcash community seems to be aware of the essence of the problem:
“Anyone with @coinbase UK problems: this only applies to Coinbase in the United Kingdom. Residents of the country can still buy / sell Zcash through @cex_io.
Other exchanges were not affected. To prevent rumors, we confirm that Zcash is 100% compatible with UK regulations and KYC / AML requirements. ”
At the same time, Electric Coin Company stated that they could not comment on the reason for delisting the coin, although it is believed that Coinbase is afraid of possible problems with the regulators.
During the listing on the exchange in December 2018, at first ZEC was not added to the jurisdictions of New York and the UK, also without any explanation. Perhaps this is due to the fact that at one time the US Department of Homeland Security called Zcash one of the cryptocurrencies that is potentially suitable for illegal transactions.