The largest US digital currency exchange, Coinbase, has reinstated GBP deposits and withdrawals for its UK-based customers.
The San Francisco-based company announced yesterday in a blog post that “we’ve successfully transitioned our payment systems for UK customers”. Coinbase said that in order to use its new payment system “Coinbase customers simply sign in to their account, select ‘Deposit’ on their GBP wallet and follow the on-screen instructions to set up a new payment method, using the new sort code and account number”.
The news comes some three months after Coinbase reportedly lost its Barclays account after the British banking giant ended its relationship with the crypto exchange. According to a Bloomberg report published yesterday, the exchange has now found a new banking partner in the form of ClearBank. The newswire attributed the information to an unnamed source familiar with the matter.
The London-based lender, which started operations in 2017, is a direct participant in the UK’s faster payments system, which will allow Coinbase to again offer near-instant transfers between GBP bank accounts and Coinbase wallets.
In comments to Bloomberg, the chief executive officer of Coinbase UK, Zeeshan Feroz, explained why the traditional banking sector has so far been reluctant to work with crypto companies.
“It’s a very nascent industry that is broadly unregulated so the challenge a traditional bank has is crypto doesn’t fit into one of its existing models for other industries,” Feroz said, as quoted by Bloomberg. “Understanding the crypto space and how you manage the risk requires a significant amount of investment and resources. As we look at the long term, that gap between crypto and traditional banks will be bridged.”
In addition to reinstating its GBP transfers, Coinbase also enabled trading in GBP for five crypto assets – Basic Attention Token, 0x, Augur, Stellar Lumens and XRP.
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