ZipZap inc – one of the most promising startups within the digital currency sector has allegedly terminated operations in the UK.
Until recently the “Cash 4 Bitcoin” service allowed customers to purchase Bitcoins in exchange for cold hard cash at thousands of locations around the country but apparently due to ongoing problems with PayPoint (the company that manages the payment processing infrastructure behind ZipZap) cash deposits have been terminated until legal clarity around digital currencies is released by the UK government and Financial Conduct Authority.
ZipZap enabled customers to simply pop into one of 28,000 PayPoint participating shops across the United Kingdom and exchange cash for Bitcoins with minimal effort.
The launch of ZipZap was exciting news for the Bitcoin community for a number of reasons. It removed the risk of transferring funds to unlicensed exchanges in Europe, opened up the cryptocurrency up to a wider UK audience for easier adoption and made the process of buying Bitcoins as easy as topping up your phone with a voucher!
At the time of writing no public announcement has been issued by ZipZap, leaving the possibility of this exciting service uncertain.
An undisclosed source with close ties to the Bitcoin community recently stated:
Due to the ease of purchasing Bitcoins with cash, money laundering issues have arisen and are the culprit behind the services abrupt closure.
With no legislation in place, it is a shame that genuine UK businesses are being deprived of the opportunity to innovate and create better services for the British people.