Coinbase UK reportedly has a new banking partner that will allow it to soon resume near-real-time payments for customers.
According to a report published by Bloomberg on Thursday (October 3), which quoted an unnamed source, Coinbase UK, which lost its banking relationship with Barclays back in July, is now a client of ClearBank.
Fortunately for Coinbase, ClearBank supports four payment schemes including “Faster Payments”. As a Faster Payment Participant Bank, ClearBank allows payments to accounts at other participant banks to be made in seconds. The transaction limit is £250,000 for individuals.
For crypto businesses, it is very difficult to get an account at most major banks due to their regulatory concerns and associated compliance costs.
Zeeshan Feroz, the CEO of Coinbase UK, confirmed to Bloomberg that there was indeed a new banking relationship, but did not name the bank. He did, however, did say that Faster Payments would soon be re-enabled, thereby allowing deposits/withdrawals in under 60 seconds.
It’s a very nascent industry that is broadly unregulated so the challenge a traditional bank has is crypto doesn’t fit into one of its existing models for other industries. Understanding the crypto space and how you manage the risk requires a significant amount of investment and resources. As we look at the long term, that gap between crypto and traditional banks will be bridged.
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