UK Finance has terminated Coinbase's membership after sending the US crypto exchange a termination letter last week, according to reports from Bloomberg. The trade body's board ended the membership after reviewing its eligibility framework, though Coinbase can appeal the decision. UK Finance represents approximately 300 banking and finance firms and serves as a membership organization for the banking and finance industry, as reported by Bloomberg. A trade body is not a regulator, however, and the expulsion does not affect Coinbase's regulatory standing with Britain's financial watchdog.
Despite the UK Finance expulsion, Coinbase's UK operations continue as normal and its licences from the Financial Conduct Authority (FCA) remain unaffected, as reported by Bloomberg. The removal does not impact Coinbase's regulatory standing with Britain's financial watchdog. Coinbase has been expanding in Britain this year, with the FCA granting it an investment licence covering stocks and derivatives in July, which allowed UK retail users to trade shares on the app for the first time. The exchange has positioned itself as building "the everything exchange: one platform, one login, for your entire financial life," as stated in its UK license announcement.
The expulsion occurs amid ongoing tensions between banks and crypto firms over payment systems. According to the UK Cryptoasset Business Council survey from January, banks were blocking or delaying about 40% of payments to crypto platforms, covering 10 exchanges including Coinbase, as reported by Bloomberg. Seventy percent of those exchanges said UK banks had grown more hostile over the previous year, highlighting the deteriorating relationship between traditional financial institutions and cryptocurrency companies. The friction also shows up in policy, with the Bank of England still planning to keep a cap on stablecoin issuance, even after dropping limits on how much individuals can hold.
The clash extends beyond payment issues, with the Bank of England still planning to keep a cap on stablecoin issuance, even after dropping limits on individual holdings, as reported by Bloomberg. Britain's full crypto regime takes effect in October 2027, according to Coinbase. Meanwhile, the conflict mirrors similar tensions in the US, where JPMorgan CEO Jamie Dimon has pledged to fight the CLARITY Act crypto bill, which would establish rules for digital asset markets. Coinbase can still challenge the UK Finance decision through its appeal process.
