Coinbase Loses UK Finance Membership Amid Bank-Crypto Conflict

Coinbase’s membership in UK Finance, the lobby group for British banks, has been revoked. Bloomberg reported on Wednesday that the organisation’s board sent a termination letter to the US crypto exchange last week.

UK Finance speaks for around 300 banking and finance companies. Per Bloomberg, the board ended Coinbase’s membership after examining its eligibility framework, and the exchange can appeal.

Coinbase's Expulsion from UK Finance and Its Impact

Bloomberg’s account relied on sources familiar with the situation. UK Finance calls itself a membership body for the banking and finance sector.

Still, a trade association is not a regulatory authority. Coinbase’s FCA (Financial Conduct Authority) licences remain unaffected, and its British business continues to run normally.

The exchange has been growing its UK presence this year. The FCA awarded it an investment licence in July that covers stocks and derivatives, allowing retail users in Britain to trade shares on the platform for the first time.

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

That statement came in Coinbase's UK licence announcement. Competitor Robinhood, however, secured a more limited UK crypto approval in August.

Reasons Behind the Tensions Between UK Banks and Crypto Companies

The expulsion comes amid a prolonged dispute about bank payments. The UK Cryptoasset Business Council reported in January that banks were blocking or delaying roughly 40% of payments made to crypto platforms.

The council’s survey included 10 exchanges, including Coinbase. Of those, 70% reported that UK banks had become more hostile over the preceding year.

Policy tensions are also evident. The Bank of England intends to maintain a cap on stablecoin issuance, despite having removed limits on individual holdings.

This conflict is not confined to the UK. In the United States, JPMorgan chief Jamie Dimon has promised to oppose the CLARITY Act, a crypto bill that would establish regulations for digital asset markets.

Coinbase retains the ability to appeal the UK Finance decision. Separately, the UK’s complete crypto regulation will come into force in October 2027, per Coinbase.