The San-Francisco based startup, Coinbase, is among the top ten exchanges by volume. On Tuesday, Coinbase announced that it has signed a deal with Barclays to open a bank account with the British Bank. This is the first of UK’s banks that have showed interest in the exchange.
Until now all UK cryptocurrency investors made their transaction though an Estonia-based bank. This significant partnership aims at facilitating the deposits and withdrawals’ procedure for Coinbase’s UK clients.
While several regulators are clamping down on exchanges, this deal Coinbase a status of a legitimate company, being the first notable exchange collaborating with a leading world bank. Barclays refused to comment regarding the issue of the unregulated operation of many exchanges due to the increasing demand in the cryptocurrency market.
Regulatory authorities from all nations are repeatedly warning investors about how decentralization can compromise security and this month the Japanese government terminated the licenses of two crypto exchanges for the same motive.
The majority of leading banks have stopped to provide services related to cryptocurrencies; due to the belief that crypto is a means that enables the financing of money laundering and terrorists. This collaboration will give both the exchange and crypto in general a semblance of legitimacy in the UK.
However, there are still many global financial institutions whose polices to ban dealing with this area of currencies become a big obstacle in innovation. HSBC has issued a complete ban on doing business with this particular sector of assets.
Coinbase also succeeded in obtaining an e-money license from the Financial Conduct Authority, UK’s market regulators which allow it to continue expanding in the European market.