Coinbase has lost its membership of UK Finance after the industry body reviewed its membership rules and sent the US cryptocurrency exchange a termination letter last week. The company retains its licence from the UK Financial Conduct Authority (FCA), and its UK operations continue. Coinbase can also appeal the decision.
UK Finance represents about 300 financial firms
UK Finance is the trade body for banks and financial-services companies in the UK, representing about 300 institutions. Membership is an industry-association arrangement rather than a regulatory authorisation, so the termination does not in itself change Coinbase's ability to provide regulated services in the country.
It is not yet clear which specific facts the board considered in reaching its decision. The available information indicates that the action followed a reassessment of the membership framework. Coinbase remains able to challenge the decision through the association's internal procedures.
Coinbase has expanded its UK offering
The decision comes as Coinbase is broadening its business in the UK. In July, the FCA granted the company an investment licence covering stocks and derivatives, allowing UK retail customers to trade shares through the app for the first time. In its earlier UK licensing announcement, Coinbase said it aimed to build an integrated trading platform covering multiple financial services, enabling customers to manage a wider range of financial activity through a single account.
Robinhood, by comparison, received a narrower approval for its UK crypto business in August. Coinbase's regulated UK expansion has therefore not been withdrawn alongside the loss of its UK Finance membership, although its relationship with the industry body has changed.
Payment disputes between banks and crypto firms persist
Coinbase's departure from UK Finance comes against a backdrop of longstanding payment friction between UK banks and cryptoasset businesses. In January, the UK Cryptoasset Business Council said banks were blocking or delaying payments to crypto platforms, with the issue affecting about 40% of relevant transactions.
The council's survey covered 10 exchanges, including Coinbase. It also found that 70% of respondents believed UK banks had become more cautious or less supportive toward crypto businesses over the previous year. Payment screening, access to banking services and anti-fraud requirements remain recurring points of dispute between traditional financial institutions and digital-asset platforms.
The UK's policy approach also shows that regulators continue to distinguish between different types of digital-asset risk. The Bank of England plans to maintain limits on the scale of stablecoin issuance, but has dropped plans to restrict the amount of stablecoins individuals can hold. Banks' cautious approach to payment channels and asset issuance could continue to shape how crypto businesses operate in the UK.
Full UK crypto regime expected in October 2027
The disagreement is not unique to the UK. JPMorgan chief executive Jamie Dimon has also said he would oppose the US CLARITY Act, which is intended to establish clearer rules for digital-asset markets. Traditional banks and the crypto industry continue to debate regulatory boundaries, customer risks and access to financial infrastructure.
Coinbase expects the UK's full cryptoasset regulatory regime to take effect in October 2027. Until then, key issues for the market and users include whether Coinbase can regain its UK Finance membership, whether UK banks will tighten or revise their screening of crypto-related payments, and how broad a range of financial services the FCA's existing licence can cover.