Digital currency exchange giant, Coinbase, has had some major developments in the U.K. Coinbase U.K. CEO Zeeshan Feroz announced exciting news in their blog: Coinbase opened a U.K. bank account, was granted an e-money license, and is now supporting the UK’s Faster Payments Scheme.
Coinbase becomes the first crypto exchange to obtain a U.K. bank account.
The company opened an account with British multinational bank and financial services company Barclays marking the first major partnership between a cryptocurrency exchange and a U.K. bank.
This is a big feat for the company as banks and lenders in the U.K. tend to avoid any association with crypto companies in fear of the reputational risks that come with dealing with digital currencies.
Coinbase receives e-money license
The Financial Conduct Authority (FCA), U.K. regulator, has granted Coinbase an e-money license that will allow the company to provide payment services and issue e-money or digital currency in the U.K. It will ultimately make it easier for their British customers to use the service.
The e-money license even extends beyond the UK to around 23 countries within the European Union in an effort to make digital currencies more accessible to everyone.
To keep the license, Coinbase will have to comply with the rules and regulations enforced by the FCA. To that, Feroz says
“We are committed to making sure customer funds are always secure and this update means that our money operations have safeguards and operational standards at par with other regulated financial institutions.”
Coinbase replaces SEPA with the Faster Payments Scheme (FPS)
Coinbase has nearly 12 million users and it has experienced considerable growth in its UK market over the years. The company will shift to FPS from SEPA for their U.K. customers to give them faster, safer, and simpler bank transfers. It will first be available to institutional users then to all U.K. customers in a few weeks.
Previous to this, U.K. users had to go through the hassle of long conversion processes to convert their money from Euros to Pounds. The process could also take as long as a few days to complete as it was done through an Estonian bank.
As these advancements may bring in more users from their European market, Coinbase plans to grow their London team by 8x by the end of 2018.