Coinbase Exchange Might Transfer Euro Accounts Due to Brexit

The California based cryptocurrency exchange Coinbase might move all digital asset accounts belonging to European users to another reliable and accredited entity operating within the EU in the event of a no-deal Brexit.

Presently, Coinbase runs a cryptocurrency company known as CB Payments Ltd headquartered in the UK and is approved and synchronized by the Financial Conduct Authority. The company only deals with cryptocurrency transactions within the European Economic Area. Albeit, the largest Bitcoin (BTC) and cryptoasset broker has not come out to reveal the name of entity where the Euro accounts will be transferred to. 

Apparently, the exchange has sent an email to all of its European cryptoasset account holders, saying that incase the UK exits the European Union at the end of October this year sans any withdrawal accord primed, then, it is more likely that the exchange will not be in a position to offer individual customers and institutions with cryptocurrency and other e-money related services, like Euro e-wallet, trading, custody, index fund and others.

Brexit Uncertainties

Taking this into consideration, the exchange plans to shift the users’ contemporary business affiliation with CB Payments Ltd directly to alternative certified Coinbase entity operating inside the EU. Fortunately, enough, the users who have been receiving Coinbase services have been assured that these services won’t be pretentious - affected by any kind of transfer.  

The exchange further noted that because of the fragmentary uncertainty and vagueness surrounding the Brexit, the scheduling and timing of transactions is yet to be wrapped up and it will be into communication nearer to the time with more important info.

Being a component of the EU, any firm setup in Britain has got the similar rights from corner to corner of the EU, nevertheless on October 31, 2019, if Britain chooses to vacate the EU shorn of a deal then automatically these firms would need to seek for a separate license that allows them to operate within the EU. As Coinbase is situated and operating in the UK, its businesses in the European region are more likely to be interrupted temporarily.