Coinbase has lost its membership in UK Finance, the trade body that represents Britain's banking and finance sector. The organization's board sent the US crypto exchange a termination letter, according to Bloomberg reporting on Wednesday.
UK Finance is a membership organization representing approximately 300 banking and finance firms. The board made the decision after reviewing its eligibility framework, and Coinbase has the option to appeal the removal.
Regulatory Status Unaffected
The expulsion from the trade body does not impact Coinbase's regulatory standing. The exchange's licenses from the Financial Conduct Authority (FCA), Britain's financial watchdog, remain in place, and UK operations continue normally.
The timing coincides with Coinbase's expansion in Britain. In July, the FCA granted Coinbase an investment license covering stocks and derivatives, allowing UK retail users to trade shares on the platform for the first time. Rival Robinhood received a narrower UK crypto approval in August.
Broader Banking-Crypto Tensions
The removal reflects escalating friction between traditional banks and cryptocurrency platforms. In January, the UK Cryptoasset Business Council reported that banks were blocking or delaying approximately 40 percent of payments to crypto platforms. A survey of 10 exchanges, including Coinbase, found that 70 percent said UK banks had become more hostile over the previous year.
Policy tensions extend beyond payments. The Bank of England maintains plans to cap stablecoin issuance, even after relaxing limits on individual holdings.
Similar conflicts exist internationally. In the United States, JPMorgan CEO Jamie Dimon has pledged to oppose the CLARITY Act, proposed legislation that would establish rules for digital asset markets.
Britain's comprehensive crypto regulatory regime is scheduled to take effect in October 2027.
