The cryptocurrency exchange Coinbase is now partnering with ClearBank to offer services to customers in the United Kingdom. The U.K. branch of the crypto platform decided to sign a new partnership with ClearBank after ending its relationship with Barclays. The information was released by CoinDesk a few hours ago.
Coinbase Partners With ClearBank
The London-based global bank Barclays is no longer offering services to Coinbase. CoinDesk reported that industry sources shared this information and informed that the exchange has already found a replacement in the United Kingdom.
Although Coinbase is now working with a new firm, users are dealing with unexpected issues that are affecting their experience while dealing with their digital assets in the platform. Barclays provided users with the possibility to be connected to the U.K. Faster Payments Scheme (FPS) that allowed users to withdraw and deposit British pounds to the platform. With the new partnership, Coinbase is expected to be connected once again to the FPS by the end of this quarter.
Banks have been reluctant to offer services to crypto-related companies, including exchanges. Regulations around the world are still far from clear and large financial institutions didn’t want to get involved in this unregulated market.
The CEO of a U.K. cryptocurrency company commented about it:
“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.”
Coinbase received an e-money license to operate in the country by the U.K. Financial Conduct Authority (FCA) and was able to have access to the FPS before than any other crypto company in the world.
There are other sources mentioned by CoinDesk that consider that the partnership between Coinbase and Barclays was just a pilot test that ended.
With this new bank, Coinbase had to arrange some issues before being able to close the deal. For example, the firm had to delist the ZCash (ZEC) cryptocurrency because it offers privacy features to users to send and receive funds. This was something that didn’t make the bank feel comfortable.
Coinbase is currently one of the largest and most recognized crypto exchanges in the world because of the services offered, the security it provides to users and for operating in the market for a long period of time.
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