Coinbase’s customers who are based in the United Kingdom have been told that the exchange will no longer support privacy-focussed Zcash as of Aug. 26, 2019. Due to that fact, the customers from that region have prompted speculation behind giving out that decision. Astonishingly, customers in the European Union or the United States are not affected by the development.
The firm was able to communicate with the customers in different ways to give them the options they can take. In the first option, anyone who holds Zcash should convert into any other cryptocurrency that is found in coinbase’s exchange. In the second option, an individual can send zcash in the wallet to either an external wallet or another crypto exchange.
Fortunately, those who fail to transfer their zcash before the deadline will not suffer since their cryptocurrency will be liquidated into GBP. After the conversion, all ZEC wallets will be eliminated from the Coinbase accounts.
Electric Coin Company, the Zcash developer, tweeted a confirmation of the news while pointing out that only Coinbase’s customers will suffer such an issue. They also gave assurance that exchanges in the U.K. will not be affected, writing:
“To pre-empt speculation, we confirm that Zcash is 100% compatible with U.K. regulations & KYC/AML requirements.”
Causes of the limitations
Speculations have risen about the reasons that led to that move. Alistair Milne, a UK-based Bitcoin entrepreneur, is one of them. He tweeted suggesting that Coinbase could have delisted its account in order to meet the KYC/AML precondition of accessing the U.K. faster payments system.
He suggested “It wasn’t a regulatory requirement, but a banking one.”
In the past year, Coinbase has been rapidly expanding its customer base, as it managed to add 8 million new users. Elsewhere, Zcash created a new blockchain network known as Ycash after carrying out a fork of its crypto.