San Francisco-based crypto juggernaut Coinbase has reportedly ended its partnership with Barclays, the bigwig of the banking industry. The exchange is already working with ClearBank to serve its British customers who will be facing some inconveniences until things get settled.
Cutting ties with crypto
Barclays took Coinbase under its wing back in 2018, which caused a lot of excitement within the crypto space. This injected a dose of legitimacy in the industry with Coinbase obtaining a much-coveted e-money license by the FCA.
On top of that, the exchange was granted support for Faster Payments Scheme (FPS), which allowed Coinbase UK customers to deposit and withdraw British pounds practically in no time. Now, it might take days to process these transactions, but ClearBank is already working on restoring access to FPS.
As for the reason why the relations for the snub, one industry insider claims that Barclays might not be comfortable with crypto anymore.
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.
New bank, new rules
While Barclays undoubtedly had a huge impact on the exchange’s listing policies, its new banking partner won’t give it too much leeway either.
Coinbase delisting Zcash was the harbinger of its banking woes. It turns out that the privacy-oriented coin that would make the lives of law enforcement officers more difficult didn’t sit well with ClearBank.