Coinbase has provided further details on its blog as to what extent its UK customers will be affected by the temporary withdrawal of the Faster Payments Scheme (FPS) for deposits and withdrawals in the UK.
The San Francisco-based crypto exchange announced on its Medium blog that starting on July 31 at 12:01 BST it will remove FPS support for domestic pound sterling (GBP) deposits and withdrawals for an unspecified transitionary period.
To help compensate for the inconvenience and in recognition of its UK customers' loyalty, the exchange said it would reduce trading fees for those impacted by the suspension of GBP bank transfers between August 1-15, although it did not say whether it expected to have FPS reinstated by August 15.
The company simply said it would share updates about reinstating FPS in the weeks ahead.
Short-Term Alternative Options
In the meantime, until it could restore FPS, Coinbase suggested a number of options for depositing funds:
- Purchasing crypto directly using a debit or credit card - the fastest way, but incurring card transfer fees
- Transferring money into your euro wallet - known as a SEPA payment
- For deposits above £10,000, make a GBP transfer from a UK bank to your GBP wallet using SWIFT payment option
Alternative options for the withdrawal of funds were as follows:
- Instant withdrawal of GBP from Coinbase to a PayPal account - the quickest alternative
- SEPA payment from your euro wallet to a bank account - taking up to three days
- Coinbase Card holders can spend crypto or withdraw from GBP from an ATM
- For withdrawals above £10,000, transfer from you GBP wallet to a UK bank using SWIFT option
Coinbase was the first global crypto exchange to get a UK bank account after being granted an e-money license by the Financial Conduct Authority. Indeed, it was only four months ago that it announced it was first digital asset exchange to support the UK's Faster Payments Scheme.
The company has still not explained what the "transition" in its payments systems is, or why it is making such a move, but blog author Zeechan Feroz, chief executive of Coinbase UK said the company remained committed to serving its customers in the UK.
Since launching in the UK and Europe in 2014, we’ve seen tremendous growth. More UK residents than ever before are investing in cryptocurrencies. In the coming months, we intend to expand access for our UK customers to a range of new crypto assets through our website and Coinbase app and our professional trading platform, Coinbase Pro.