Japanese cryptocurrency exchange set to delist Zcash (ZEC)

By: Ben Gabriel
Ben Gabriel
Ben is a cryptocurrency journalist, simple. He's also a technology and cryptocurrency geek having enjoyed immersing himself in the… read more.
on Jul 24, 2020
  • Liquid exchange will delist Zcash alongside 28 other coins.
  • The company which develops Zcash cryptocurrency made this announcement on twitter.
  • Experts claim this course of action by Liquid is due to privacy concerns on Zcash network.

The Electric Coin Company, a profitable entity, and developer of the Zcash cryptocurrency posted a tweet. The tweet claims that Liquid exchange will be delisting Zcash (ZEC) to apply for the license to operate in Singapore.

“(1/5) We have been notified by Liquid that they will delist Zcash along with 28 other coins as part of their process for applying for a license to operate in Singapore.”

On the other hand experts believe the exchange is removing the cryptocurrency from its list due to privacy concerns. Although this opinion is not completely nonsensical as the privacy of Zcash (ZEC) has been a debatable topic in the past.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

In fact, one user put up a challenge on twitter to trace the transaction of privacy-focused cryptocurrency, Zcash. Interestingly, the challenge was accepted and it took three days to trace the transaction on the Zcash network.

Liquid exchange and Zcash compatibility

According to CryptoCompare, an independent cryptocurrency data provider, Liquid exchange ranks at the 6th position among the top exchanges. The exchange has not yet released an official statement regarding the removal of Zcash from its list.

Liquid exchange is playing by the rules in order to obtain a license from regulators of Singapore.  In the earlier part of this year, Singaporean authorities introduced a payment service act. The new payment framework implies all crypto and blockchain projects must get a license to function.

However, Zcash is entirely compatible with, Combating the Financial Terrorism CFT, and Anti-Money Laundering AMT regulations. Also, including the regulations that apply to exchanges operating in Singapore.

The Electric Coin Company said in a tweet:

“(2/5) We believe Liquid’s decision was made out of an abundance of caution for the purpose of quickly obtaining a license.”

Besides, the Zcash cryptocurrency developers are optimistic that Liquid might incur a change of thought and reverse its decision.

The EEC further wrote:

“We are not aware of any other exchanges taking a similar course of action. However, we are always available to help exchanges who wish to better understand how Zcash fits within a regulatory framework, and how exchanges can comply with their AML/CFT obligations.”

The blockchain network of Zcash (ZEC) recently incurred a hard fork on 903000 block. This might be one of the most probable causes behind Liquid exchange removing Zcash from its list of cryptocurrencies.

Even though, we have to wait until the liquid exchange makes an announcement. Meanwhile, let us know which one of the above factors is the reason behind the removal of Zcash from the list.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
68% of retail CFD accounts lose money