Barclays has eventually cut ties with Coinbase according to Coindesk report on Aug. 13.
Basically, an unnamed industry source stated that the British banking giant would no longer offer banking services to the United States crypto exchange.
Besides severing the relationship that Coinbase had after it opening a Barclays bank account back in March 2018, the announcement could hit the crypto community hard.
End-users of Coindesk may no longer gain access to the United Kingdom’s Faster Payments Scheme. In effect, the exchange of cryptocurrencies for British pounds sterling will slow down dramatically as the major crypto exchange has lost a crucial traditional banking establishment.
Still, no one knows the precise reason for the split, but an anonymous source has given Coindesk the following speculations:
“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.”
Meanwhile, Coinbase can use a less established, younger operation Clearbank to continue accessing UK banking.
Barclays has also, at one instance, diminished its involvement in the crypto sphere. After two employees decided to remove information about ongoing digital assets work from their respective LinkedIn profiles in August 2018, the bank later made official denials about opening a crypto trading desk.
In recent months, Coinbase has not undergone any great suffering. Even more interesting, July reports showed that new users amounting to eight million had been registered in the preceding year.
Also, in that month, Brian Armstrong — the CEO of Coinbase — expressed Coinbase plans to promote crypto adoption beyond basically engaging in trading widely.