Zcash (ZEC) Plumbs Four-Month Lows After Coinbase U.K. Cuts Support for Privacy Coin
Zcash’s fall through the crypto market cap rankings intensified on Monday after Coinbase told its U.K. customers it will no longer be supporting the privacy-focused coin. Coinbase U.K. customers have until August 26 to convert their ZEC holdings or move them to an external wallet.
ZEC Price Update
Zcash extended its freefall through the latter stages of Monday’s session, dropping 5.5% to $56.76, according to CoinMarketCap. With the fall, ZEC is back within range of last week’s four-and-a-half-month low and has retraced 55% from the June 21 high of $124.30.
The privacy coin fell 4.9% against bitcoin to trade at 0.00498353.
At current values, Zcash has entered into an attractive target area for for traders looking to buy on the dip. According to last week’s Zcash analysis, the $55-$45 price zone provided support on multiple occasions between December and May.
In dollar terms, Zcash has a market capitalization of $407.4 million, where it ranks 27th among active projects. At the beginning of the year, Zcash was ranked in the top 20.
Trading in ZEC was valued at $407.4 million based on reported transactions. A lesser known exchange by the name of LBank processed roughly half of the daily volumes.
Coinbase U.K. to De-List Zcash?
Crypto traders took to Twitter last week to inquire about Coinbase U.K.’s apparent decision to stop supporting Zcash. The exchange communicated its decision via email, where it advised British customers to “convert or send” their ZEC by August 26. Apparently, that’s the last day they will have access to their ZEC balances.
All remaining ZEC balances will be converted to British pounds on that day.
— Alex (@deskofwilkes) August 8, 2019
The news was later picked up by various media outlets, including Coindesk, though they all conceded that there was no stated reason for the delisting. The Electric Coin Company, the parent entity behind Zcash, confirmed the news on Friday.
“This is limited to Coinbase UK only,” the Electric Coin Company tweeted, adding that British residents can still access Zcash through CEX.io.
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
The decision to de-list Zcash came came less two weeks after the United Kingdom’s Financial Conduct Authority (FCA) delivered its long-awaited guidance on cryptocurrency. The main takeaway of the 50-page guidance paper was the regulator’s distinction between e-money tokens, utility tokens and security tokens. You can learn more about them here.
Some people are already making a connection between the government’s enhanced oversight of crypto assets and Coinbase’s decision to stop supporting Zcash. After all, Zcash employs zero-knowledge proofs to encrypto transactions and keep sender/receiver information completely private. It remains to be seen whether this underlying technology was behind Coinbase U.K.’s decision to pull the plug on one of the most promising privacy coins on the market.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.