Key Insights
- UK Finance reportedly terminated Coinbase’s membership after reviewing its membership criteria.
- The trade group concluded that crypto exchanges did not meet its framework, while Coinbase retains the right to appeal.
- COIN stock closed below $200, although the membership decision does not affect Coinbase’s UK regulatory permissions.
Coinbase has reportedly lost its membership in UK Finance after the trade association reviewed its membership framework and concluded that crypto exchanges did not meet its criteria.
Bloomberg Law reported on Sept. 23 that UK Finance’s board informed Coinbase of the decision in a letter sent the previous week. The report said Coinbase can appeal the termination.
The decision does not affect Coinbase’s regulatory status in Britain because UK Finance is an industry trade association rather than a licensing authority.
UK Finance Drops Coinbase After Membership Review
According to the reports, the decision to remove Coinbase follows UK Finance’s review of its membership framework. The group established that crypto exchanges do not meet its membership standards.
It is unclear what the new standards are, but reports claim that Coinbase has the right to appeal the decision.
With the removal, Coinbase will be excluded from an organization that includes around 300 financial services institutions, including major banks and payment institutions.
Many in the crypto industry believe that excluding crypto exchanges from such a group signals that the traditional financial industry is pushing back against crypto.
While digital assets have grown in popularity and are increasingly becoming a key policy issue globally, traditional financial institutions are now directly competing with crypto forms. In the US, banks and crypto firms cross paths over stablecoin yield in the Clarity Act.
Commercial banks in the UK have also restricted access to banking services for crypto businesses. While the Financial Conduct Authority (FCA) has pushed back against blanket restrictions on banks, industry stakeholders claim that many banks will still impose restrictions on crypto even under the FCA crypto regime, which is scheduled to become effective in October 2027.
Coinbase Stock Sees Slight Decline After Crossing $200
Meanwhile, the removal does not affect Coinbase’s regulatory position in the UK as UK Finance is not a licensing body. The exclusion might only limit the exchange advocacy strength in the country.
Interestingly, Coinbase stock is down slightly today, falling by 1% to $198 after recently crossing $200 for the first time since May.
COIN is currently on a good run with the stock rising by more than 20% in the past five days. However, it is still down 12% this year.
Its performance mirrors Bitcoin’s, which is also down 2% today after rising 11% over the past seven days.
The flagship crypto asset is currently trading around $84,000 and has gone from below $60,000 to over $80,000 in just three months. However, it is still down about 4% today.
This article is for informational purposes only and does not constitute financial or investment advice.