Coinbase CEO Says UK Banks Ban Fiat Payments For Crypto Firms Is Impossible

Key Points:

• Coinbase CEO thinks it is not feasible for some UK banks to ban fiat payments to crypto companies.
• An outright ban could harm real-world use cases, so further education and cooperation is still good practice.
• UK crypto companies have difficulty obtaining banking services as central banks impose bans or restrictions amid a pervasive banking crisis.

Coinbase CEO Brian Armstrong yesterday had a meeting with the UK regulator. He thinks it is impossible to ban contact between cryptocurrency companies and banks completely.

Coinbase CEO Brian Armstrong tweeted that he met with UK Secretary of State for Economy and Cities Andrew Griffith today. The UK is accelerating the development of sound cryptocurrency regulation to promote economic growth and protect consumers.

He said it is not feasible for some UK banks to ban fiat payments to crypto companies. Fraud controls make sense, but comprehensive bans are not and are likely to be illegal.

Additionally, a 24-hour “cool-down” period for crypto transactions is unreasonable and would harm real-world use cases, capital market formation, and consumers.

UK crypto companies need help getting banking services as major banks impose bans or restrictions on businesses buying or selling cryptocurrencies. UK banks have restricted crypto payments in recent years, with NatWest and Santander being particularly restrictive.

Electronic regulations have been increasingly pushed since the banking crisis in the US spread. Silicon Valley Bank’s collapse led to its UK branch’s collapse, prompting it to sell HSBC.

In addition to the issue of tightening regulations on rows, the UK’s newly created Department of Science, Innovation, and Technology will promote the country’s Web3 strategy and metaverse.

Former Finance Minister George Osborne will interview Brian about the company’s focus in the UK. Nearly a decade ago, Mr. Osborne saw the potential of cryptocurrencies, ordering the Treasury to look at how the UK could become a power in the sector and how cryptocurrencies could strengthen. The country’s burgeoning fintech sector while maintaining the City’s global standing. That work continues. In 2022, the UK Government was committed to introducing a new regulatory regime for crypto assets, with a consultation launched last month.

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