It appears like the digital currency, Zcash has hit a snag. Recent reports indicate that Coinbase will remove ZCash from its platform for UK users. The cryptocurrency exchange made the announcement via a press release that will be removing its support for privacy coin Zcash for U.K. customers who use Coinbase’s platform.
Coinbase decision to cut ties with Zcash users in the UK comes when the British tax agency, the HMRC issued a notice to crypto exchanges. The agency is demanding for the customer and transaction data of users on several exchanges including Coinbase, eToro and CEX.IO. Zcash is reportedly down by 0.77% as of press time. It is trading at $57.78.
Coinbase Told its UK Users About the Development Via Email
As from August 26, UK customers of Coinbase will no longer have the ability to hold Zcash balances on the exchange. The exchange is believed to have informed its customers via an email on Friday, August 9. Accordingly, to move on and meet the new standards, Coinbase’s customers in the UK will have to either convert their Zcash holdings into any other crypto traded on the exchange or they will have to move their holdings to a new exchange. They can also move it to a new hardware wallet, the email stressed.
Coinbase will Liquidate User Accounts That Fail to Pick Any Options From August 26
Per the report, the email sent to Coinbase UK customers stipulates that any user who does not go for either of the options listed above by August 26, the crypto exchange will automatically liquidate their Zcash balances into the customers’ GBP wallets. It appears that Coinbase is the only exchange that has opted to take such drastic action.
Meanwhile, Electric Coin Company, the firm behind privacy coin Zcash, posted a tweet this Friday. The tweet stated that U.K. residents will still be able to buy and sell Zcash tokens through the CEX.IO cryptocurrency exchange. The tweet added that “No other UK exchanges have been affected,” except Coinbase.
Coinbase’s sudden decision to remove Zcash for UK residents follows reports that the British tax agency, the HMRC has issued a notice to crypto exchanges. The tax agency is demanding the customer data and transaction information of a section of cryptocurrency exchanges including Coinbase, eToro and CEX.IO. The Electric Coin Company added in Friday’s tweet about the matter, that Zcash is still “100% compatible” with the UK’s regulations. Finally, the company said its native token is compliant with the UK’s KYC (know-your-customer) AML (anti-money laundering) requirements.
Zcash Trading at $57.78 at Press Time
According to data given by CoinMarketCap, the price of ZCash is changing hands at $57.78. The token is down by 0.77% in the last 24 hours and could even go down more following the matter with Coinbase. Zcash has a total market capitalization of $414,474,234- and 24-hours trading volume of $104,079,612 per CoinMarketCap data. As of the early hours of August 12, Zcash held a total market supply of 7,173,856 ZEC.
In the last seven days, Zcash has had a high point of $68.23. In the same period of time, the digital asset has hit a low of $55.88. While in the last 24 hours, the price of ZCash has hit a high of $60.40 and a low point of $57.54.