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Barclays to Cut Banking Ties With Coinbase, Speed of GBP Withdrawals and Deposits to be Affected

Barclays has reportedly decided to cut its banking ties with Coinbase UK. This may affect the speed of GBP transactions on Coinbase, though GBP based trading is not going to be suspended immediately on the exchange.

August 14, 2019 11:55
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It wasn’t too long ago when Coinbase had launched fiat-crypto trading in Europe. It was less than a year ago in September 2018. however, within a year of launching it the company has encountered a major roadblock to keep doing it in a smooth manner. Barclays, the global banking giant that was making it possible for Coinbase to provide this feature, has decided to cut its ties with Coinbase. Though a formal announcement has not been made in this regard, the report is based on information provided by the trusted industry sources of Coindesk.

According to the report of Coindesk, Barclays has decided to do this thing due to a little contraction in its risk appetite. This is expected to hit the crypto community of Britain very hard, because the move will restrict the access of Coinbase users to UK’s Faster Payments Scheme (FPS) system. As a result, the rate at which GBP moves into Coinbase ecosystem may get reduced dramatically. Here’s what Coindesk source told it in this regard:

“It is my understanding that Barclays’ risk appetite has contracted a little — I’m not sure exactly why or what’s been driving that, maybe there has been some activity they are not happy with. But it’s about Barclays’ comfort level with crypto as a whole.”

For time being Coinbase will continue to provide fiat-crypto trading through Clearbank. However, it soon needs to find another more established banking partner as soon as possible if it wants to provide services without any disruption in UK.

As far as Barclays is concerned, this is not the first time when it’s taking a step back in the crypto space. There was a time when people were enthusiastic about its increasing interest in crypto, but it started taking a U-turn soon after that. Last year in August it denied the reports that claimed it was working on a cryptocurrency trading desk, and then it gradually stopped all kind of actions that would’ve brought its name in the limelight of crypto. In April its name once again appeared in the crypto space as it completed a blockchain trial in partnership with RBS, but today we’re hearing this thing! Clearly, Barclays may be interested in blockchain, but it’s not looking interested in crypto at the moment.

Technology and business were my core interests, so it wasn't surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news. You can connect with me on Facebook to learn more about me. :)


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