One source of excitement within the crypto industry is the announcement of mainstream firms partnering with those in the crypto space as this is usually a sign of adoption and mainstream acceptance. However, these partnerships do not always last into the longer term and sometimes, one or both partners choose to end the relationship for various reasons and this is allegedly the case with Barclays, a British banking giant, who is allegedly severing ties with Coinbase, an American-based crypto exchange.
According to an August 13, 2019 report, where some unnamed sources stated that Barclays will no longer be banking for Coinbase which is the end of an over one-year relationship as Coinbase opened a Barclays account in March 2018.
This news is expected to create a bit of a shake-up within the crypto industry because the partnership had been a means to bring together the crypto industry as well as the traditional banking establishments and may also lead to the end of Coinbase having access to the United Kingdom’s fast payment scheme and this might also lead to a slowing of the exchange of crypto for the British pound.
So far, no official reason has been given for the severing of ties.
“It is my understanding that Barclays’ risk appetite has contracted a little — I’m not sure exactly why or what’s been driving that, maybe there has been some activity they are not happy with. But it’s about Barclays’ comfort level with crypto as a whole,” the report says.
However, this does not mean that Coinbase will have any access to banking services as they will reportedly make use of Clearbank, which is a less established and new organization but will nevertheless ensure they have all the services they require to function. Even though it has other options for banking with in the UK, not all firms in other parts of the world are so lucky as, over the years, it has been reported that several crypto and blockchain companies have been refused banking services which are crucial to enhance their ability to conduct their business.
This was the case within India as several firms were unable to access banking services and as a result, either moved operations abroad or were forced to shut down altogether.