Coinbase Delists Privacy-Focused Cryptocurrency, Zcash (ZEC), in the UK
A Reddit User, u/realpotatoes, recently referenced a Twitter post in which it was revealed that crypto exchange, Coinbase has decided to delist privacy-focused cryptocurrency, Zcash in UK, excluding the EU and U.S.
This will come into effect starting, Monday, August 26, 2019. The Reddit post was made to inquire the possible reasons why such a move was made.
One user, KwukDuck, argued that the cryptocurrency does not abide by UK laws. In particular, it was stated that the UK does not support “anonymous and untraceable value transactions,” adding that this applies to:
“anything that can be invented that allows users to transact outside of the established system.”
In response, another user deemed that:
“Zcash with Coinbase is traceable and KYCd.”
The former argument does not seem to hold, as such delisting is only for Coinbase users in the UK. As per a Twitter post made by Electric Coin Company, as seen below, UK residents can still buy/sell Zcash through CEX.IO. Moreover, it has been reaffirmed that Zcash is “100% compatible with UK regulations & KYC/AML requirements.”
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
Evidently, it has nothing to do with security or regulatory concerns, but something on Coinbase’s end. After further digging, another user, aeonaficianado, reasoned that Coinbase may have viewed Zcash as a security token, to which ArticMine responded:
“This would make sense since the founder’s reward would make Zcash centralized. This, to a large degree, is following the guidance from FinCEN in the U.S.”
It was additionally deliberated by Reddit user, pebx, that the “founders’ reward is running out and they have kind of a crisis right now since their monthly burn rate is roughly $1M a month right now.” As for Coinbase, the crypto exchange has yet to disclose the reasons why – leaving many UK residents confused and frustrated.