Britain's Bank Lobby Kicks Out Coinbase: Are Lenders Shutting Crypto Out?

Coinbase has lost its membership of UK Finance, the trade body that lobbies for Britain's banks. The group's board sent the US crypto exchange a termination letter last week, Bloomberg reported on Wednesday.

UK Finance speaks for around 300 banking and finance firms. Its board ended the membership after reviewing its eligibility framework, and Coinbase can appeal, according to Bloomberg.

What Losing the UK Finance Seat Means for Coinbase

Bloomberg based its report on people with knowledge of the matter. UK Finance describes itself as a membership organization for the banking and finance industry.

A trade body is not a regulator, however. The expulsion does not affect Coinbase's licences from the Financial Conduct Authority (FCA), Britain's financial watchdog. Its UK operations also continue as normal.

Coinbase has been expanding in Britain this year. In July, the FCA granted it an investment licence covering stocks and derivatives. The approval let UK retail users trade shares on the app for the first time.

"Coinbase is building the everything exchange: one platform, one login, for your entire financial life," the exchange said.

Coinbase made that pitch in its UK license announcement. Rival Robinhood, by contrast, won a narrower UK crypto approval in August.