What is Zcash
Zcash is a cryptocurrency launched in 2016 offering optionally shielded transactions via zero-knowledge proofs (zk-SNARKs), which can hide the sender, recipient and amount of a transaction.
Unlike Bitcoin, where all transactions are publicly visible, Zcash lets users choose between transparent transactions (like Bitcoin) and shielded (private) ones — a feature that has drawn regulatory attention in some countries.
Frequently asked questions
Is Zcash regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying Zcash on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is Zcash taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
