In one of the important developments, cryptocurrency exchange Coinbase has announced that Zcash will no longer available for its users in the UK from August 26, 2019, onwards. The announcement has been made in this regard, and the company has said to users that they must either exchange the Zcash to some other cryptocurrencies or they can send the Zcash to other cryptocurrency exchanges and this has to be completed before August 26th. If the users fail to comply with the given deadline, Zcash will automatically get converted into GBP.
Surprising and sudden announcement
This sudden announcement coming from the house of the cryptocurrency exchange has caught many off guards because no one was expecting something like this from the Coinbase. There was no hint or inkling that such a decision could be made; but with now this announcement being made, users are taking steps in accordance with the recommendations provided by the company. Speculations are rife that the decision of the UK authorities which has asked cryptocurrency exchanges to provide them information regarding their user base and past transaction histories could be the possible reason behind this decision. The deadline given for the conversion of Zcash is somewhere around 17 days, which is quite a short time from the perspective of the user.
Zcash and its history
It was only in the July 2018, Coinbase added the Zcash on its platform, and within roughly one year of operation, the company has decided to remove it. The government and tax authorities in the UK have been investigating many fraud cases wherein people have circumvented the tax laws through the use of cryptocurrencies, and this is the reason why the government has asked cryptocurrency exchanges to submit the details of their users to authorities. What makes the development even more surprising is the fact that only a couple of months ago the Coinbase announced its earn program with Zcash being a part of this initiative and now it has asked its UK users to remove Zcash from their account. There is no communication from the Coinbase neither there is an official statement explaining the reason why the exchange has taken such an extreme step and what the exchange is doing in order to ease the inconvenience caused to its users because of this massive announcement.