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Coinbase and Barclays broke up– however the cryptocurrency exchange already has a brand-new banking bae

Coinbase and Barclays broke up– however the cryptocurrency exchange already has a brand-new banking bae

Just days after Coinbase announced the < a href =" https://www.coindesk.com/coinbase-uk-dropping-support-for-cryptocurrency-zcash" rel=" nofollow noopener" target=" _ blank" > elimination of assistance for Zcash for UK consumers, reports suggest the cryptocurrency exchange is< a href=" https://www.coindesk.com/barclays-is-no-longer-banking-coinbase" rel= "nofollow noopener "target= "_ blank">

parting ways with banking essential Barclays. Sources knowledgeable about the matter told CoinDesk that Barclays is no longer dealing with Coinbase. It’s unclear if the sources are representatives from either of the companies discussed, or are independent.

The news has actually triggered unnecessary interruption, and Coinbase users have actually reportedly been indirectly affected. Coinbase’s relationship with Barclays offered its UK clients access to the Faster Payments Scheme which allowed users to directly transfer and withdraw sterling into their exchange accounts.

Coinbase has actually discovered a replacement UK banking partner in ClearBank. However however, the break down of the exchange’s relationship with Barclays has currently apparently slowed UK deposits and withdrawals, which now “take days to procedure.”

ClearBank is an upstart opposition bank based in the UK. It makes sense that such a bank would be interested in dealing with the likes of Coinbase, particularly given the < a href=" https://thenextweb.com/contributors/2018/06/11/why-bankers-hate-cryptocurrency/ "rel=" noopener "target= "_ blank "> obstacle cryptocurrency is often touted to pose versus traditional banking. Huge banks typically wait the mantra, “< a href="

https://thenextweb.com/hardfork/2019/04/02/china-blockchain-projects-top/” rel =” noopener” target=” _ blank “> blockchain not Bitcoin.” The reasons for the separation of Barclays and Coinbase are not incomparably clear. ClearBank, Coinbase, and Barclays all decreased to comment on the matter.

However, one unnamed source told CoinDesk that the Barclays-Coinbase relationship was simply a “pilot program” that had run its course. The source even more included that Barclays has actually probably held Coinbase back, avoiding it from noting certain coins and tokens.

Does that mean ClearBank will be a clear run for a swathe of brand-new coins on Coinbase? Most likely not. Earlier this week, Coinbase announced that it would < a href =" https://www.coindesk.com/coinbase-uk-dropping-support-for-cryptocurrency-zcash" rel= "nofollow noopener” target=

” _ blank” > get rid of support for Zcash by August 26. In a message to Hard Fork, a spokesperson from the Zcash Structure said it had no more knowledge on why Coinbase has made the choice beyond what was talked about openly.

Coinbase very first < a href =" https://www.cnbc.com/2018/03/14/coinbase-cryptocurrency-exchange-opens-bank-account-with-barclays-in-uk.html" rel= “nofollow noopener” target =” _ blank” > secured a bank account with Barclays in early 2018, by August it began rolling out support to let UK customers < a href=" https://thenextweb.com/hardfork/2018/08/02/coinbase-cryptocurrency-fasterpayments/" rel=" noopener" target=" _ blank" > buy and offer cryptocurrency in Pounds sterling.

Published August 14, 2019– 08:39 UTC

Matthew Beedham

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