Coinbase Loses Barclays Banking Services

August 14, 2019 | Digital Assets, News

Barclays reportedly ends its relationship after less than 20 months.

Coinbase, one of the world’s largest cryptocurrency exchanges, is looking for a new provider of banking services.

Coindesk reported Wednesday that Barclays cut ties with the firm. Their relationship lasted less than 20 months, according to sources cited on the matter.

Though neither party responded to questions, reports assume  Barclays ended the deal. The two firms engaged in a partnership that allowed users to purchase cryptocurrency in pounds.

Reuters called the two firms’ agreement – which began in March 2018 – “rare.” That month, Coinbase’s chief executive in the U.K. said the deal faced delays. According to Reuters, Barclays’ had concerns about Coinbase’s protection systems against money laundering.

Coinbase and Other Exchanges Face Increased Scrutiny in U.K.

Barclays‘ isn’t alone when it comes to concerns about cryptocurrency exchanges and their security.

Roughly 75% of cryptocurrency firms in the United Kingdom obtain banking services outside of the country. That figure is according to a May and June survey by CryptoUK of more than 40 U.K.-based crypto businesses.

That same report shows that 55% of crypto firms active in the U.K.. have applied for accounts and faced rejection. These institutions reported opening accounts in 15 different jurisdictions, including Switzerland, the United States, and competing EU member states.

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