Barclays is no longer offering its banking services to Coinbase, one of the largest cryptocurrency exchange companies. Sources say that they ended the relationship that began March of last year in Europe.
This exclusive contract between the company based in San Francisco and the British-based bank made it easier for the users of Coinbase to purchase cryptocurrencies and withdraw their balances through the British pound.
Coinbase has not responded to several attempts for their comment, while Barclays has declined to make a statement. This news first broke out on Wednesday, via the crypto news website Coin Desk.
Most large banking institutions all over the world are reluctant to form partnerships and do business with companies that manage Bitcoin and other crypto coins because of the image that criminals only use crypto for laundering money. Most banks are scared that governments and regulating bodies will investigate and monitor them.
According to a survey by the company CryptoUK, about 75 percent of cryptocurrency businesses in Great Britain are forced to do their banking overseas because of the difficulty of acquiring banking services in the country.
Even businesses that are in the crypto space that do not handle coins, like web designers, usually encounter problems in opening bank accounts. According to CryptoUK chair Iqbal Gandham, just an association in the crypto industry is enough to an account with a major bank.
Because of these hindrances, crypto firms face additional operational expenses like handling accounts out of the country. The crypto industry is unclear on the steps they need to gain easier access to working with banks.
Cryptocurrencies are not regulated in Britain and across Europe, but Coinbase has acquired licenses to offer fiat related services for 23 European countries. Their customers deposit money at Coinbase so that they can purchase and sell their cryptocurrencies.
Based on reports last April, even though banks are reluctant to get involved in the crypto world, many large corporations and venture capital funds are pouring their investments in the crypto space.