Coinbase UK Dropping Support for Cryptocurrency Zcash

The U.K. arm of Coinbase appears to be dropping support for the privacy-focused cryptocurrency zcash.

AccessTimeIconAug 12, 2019 at 8:05 a.m. UTC
Updated Sep 13, 2021 at 11:18 a.m. UTC

The U.K. arm of Coinbase appears to be dropping support for the privacy-focused cryptocurrency zcash.

According to customers, Coinbase UK is sending letters out warning people that they will need to convert their zcash (ZEC) holdings, or remove them to an external wallet, by Aug. 26.

— Alex (@deskofwilkes) August 8, 2019

The cryptocurrency exchange gave no specific reason for the removal of the cryptocurrency, but said all remaining ZEC balances on Aug. 26 will be automatically converted to British pounds in users accounts.

The Electric Coin Company, developer of zcash, appeared to confirm the news, saying in a tweet on Friday:

"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."

It further said "To pre-empt speculation, we confirm that Zcash is 100 percent compatible with UK regulations & KYC/AML requirements."

In its guidance released at the end of July, the U.K.'s financial watchdog, the Financial Conduct Authority, said that while some forms of crypto assets may fall under its regulatory remit, "exchange tokens" such as bitcoin and ether do not. That category would appear to include zcash.

The British tax agency, HM Revenue & Customs, has recently been sending out letters demanding that cryptocurrency exchanges – including Coinbase, eToro and CEX.IO – reveal customers’ names and transaction histories in a bid to claw back unpaid taxes, industry sources told CoinDesk.

Zcash allows users the option to hide (or shield) details of their transactions using a type of zero-knowledge proof called zk-SNARKs.

When Coinbase Pro announced zcash support back in November 2018, it said that it would "support deposits from both transparent and shielded addresses, but only support withdrawals to transparent addresses. In the future, we’ll explore support for withdrawals to shielded addresses in locations where it complies with local laws.”

Users of Coinbase in other jurisdictions appear unaffected by the removal of zcash support at press time.

Zooko Wilcox image via CoinDesk archives

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown