Barclays is no longer banking cryptocurrency exchange Coinbase

by Osiris Team


Posted on Aug. 14, 2019, 10:46 a.m.
Alerts Development
Time to read: 1 min
General

Barclays is no longer providing banking services to cryptocurrency exchange Coinbase, sources familiar with the matter told Reuters, ending a relationship that started in March last year as the exchange expanded in Europe.

The rare deal between the San Francisco-based exchange and the British bank made it easier for Coinbase users to buy cryptocurrencies with pounds and withdraw their funds.

Barclays declined to comment, while Coinbase did not immediately respond to a request for comment.

Large global banks have been reluctant to do business with companies that handle bitcoin and other digital coins because of concerns they are used by criminals to launder money and that regulators will soon crack down on them.

Three-quarters of cryptocurrency businesses in Britain are forced to bank overseas due to the difficulty of getting banking services onshore, a survey by industry body CryptoUK reported last month.

The exchange’s chief executive for the UK, which is Coinbase’s biggest European market, said in March 2018 that the deal with Barclays had taken some time to sign because the bank needed to be sure that Coinbase had the right systems in place to prevent money laundering.

Cryptocurrencies are largely unregulated in Europe, but Coinbase is licensed to provide fiat currency-related services across 23 EU countries. Many customers deposit fiat money – currency that a government has declared to be legal tender – at Coinbase before buying and selling cryptocurrencies.

While big banks remain reluctant to become too closely involved in the plumbing behind the global crypto market, large companies and venture capital funds are pouring money in, Reuters reported in April.


Related links:
Source
Like and comment it on:

More cryptocurrency news

Latest news

Bakkt reveals imminent Bitcoin futures launch date after receiving regulatory approval

The long-awaited and highly anticipated Bitcoin futures platform Bakkt says it has received regulatory approval and is ready for launch.


Development Regulatory
BTC

Aug. 17, 2019, 12:09 p.m.

New money-laundering rules change everything for cryptocurrency exchanges

Complying with regulators could mean the difference between going mainstream and remaining forever on the margins of the global financial system.


Analytics
General

Aug. 16, 2019, 10:40 a.m.

Cardano Foundation supports global educational programmes focused on Blockchain security

Cardano recognises the importance of education to drive the adoption of the Blockchain technology


Development
ADA

Aug. 16, 2019, 10:33 a.m.

Samsung’s cryptocurrency wallet adds Bitcoin support

Samsung’s cryptocurrency wallet, the Blockchain Keystore, has added support for the flagship cryptocurrency Bitcoin according to updated information on the South Korean giant’s website.


Adoption Development
BTC

Aug. 15, 2019, 11:14 a.m.

China is prepared to launch its sovereign crypto asset

At a China Finance 40 Group meeting, an important official of the PBoC claimed that China is prepared to launch its sovereign crypto asset. This surprise announcement comes, of course, amid a currency war and raging trade spat between the U.S.


Alerts Development Regulatory
General

Aug. 13, 2019, 11:53 a.m.

Follow us