Coinbase Kicked Out of UK Banking Lobby Amid Payments Dispute

Coinbase has lost its membership in UK Finance, the trade body that represents Britain's banks. The group's board sent the US crypto exchange a termination letter after reviewing its eligibility framework.

UK Finance represents around 300 banking and finance firms, but being part of the organization does not give Coinbase any regulatory powers. The expulsion does not affect Coinbase's licenses from the Financial Conduct Authority (FCA), Britain's financial watchdog, or its UK operations, which continue as normal.

Coinbase has been expanding in Britain this year, with the FCA granting it an investment license covering stocks and derivatives in July. This approval allowed UK retail users to trade shares on the app for the first time.

However, the removal of Coinbase from UK Finance lands during a long-standing fight over bank payments. In January, a survey by the UK Cryptoasset Business Council found that banks were blocking or delaying about 40% of payments to crypto platforms, with 70% of exchanges saying UK banks had grown more hostile over the previous year.