Brexit Forcing Coinbase to Move Euro Accounts
The biggest bitcoin crypto broker and exchange is apparently to transfer all Euro accounts to a yet to be determined “licensed Coinbase entity within the EU.”
CB Payments, an electronic money institution authorised and regulated by the UK Financial Conduct Authority (“FCA”), is based in the United Kingdom and handles Digital Currency transactions originating from the European Economic Area (EEA), according to their statement. They apparently have e-mailed cryptonians in Europe to state:
“If the United Kingdom leaves the European Union on 31 October 2019 without any withdrawal agreement in place, it is expected that CB Payments, Ltd. will no longer be able to provide you with E-Money Services, such as your Euro wallet.
In light of this, we plan to transfer your current relationship with CB Payments, Ltd. to another licensed Coinbase entity within the EU. The Coinbase Services you receive will not be affected by any transfer.
Due to the ongoing uncertainty around Brexit, the timing of any transfer is still to be finalised and we will be in touch closer to the time with further information.”
As a member of the European Union (EU), any company established in Britain has the same rights across the EU as within the United Kingdom, known as passporting.
After Brexit, however, such rights will end instantly if there is no deal. Meaning companies like Coinbase would require licenses from regulators within EU as the FCA license would no longer be sufficient.
Meaning there may be disruptions and delays in money transfers in and out of EU as Coinbase is based in UK.
Such disruptions are likely to be temporary as Coinbase sets up an EU entity, but the uncertainty of just how Britain may leave suggests Coinbase, and other companies, do not quite know whether they have to establish a new subsidiary or otherwise.