British banking institution Barclays has stopped providing bank services to U.S.-based digital currency exchange Coinbase, according to Reuters, which cited “sources familiar with the matter.” Other recent reports suggest that Coinbase has secured a banking partnership with UK-based ClearBank.
Barclays had been providing banking services to Coinbase since March,2018. The exact reason for the termination of the relationship has not yet been divulged, and neither company chose to comment on the matter when contacted by Reuters.
However, the Barclays decision is not surprising in light of the financial industry’s reluctance to deal with cryptocurrency companies. As the news agency noted in its report:
Large global banks have been reluctant to do business with companies that handle bitcoin and other digital coins because of concerns they are used by criminals to launder money and that regulators will soon crack down on them.
Three-quarters of cryptocurrency businesses in Britain are forced to bank overseas due to the difficulty of getting banking services onshore, a survey by industry body CryptoUK reported last month.