Coinbase, one of the most popular cryptocurrency exchanges in the world, will be forced to transfer all European accounts on its platform to another entity within the EU, in the case of a no-deal Brexit.
Coinbase is preparing for a no-deal Brexit.
On August 30, Coinbase send its European customers an e-mail about a possible no-deal Brexit on 31 October 2019, and the possible consequences for both their Coinbase account and their Coinbase Card.
As one of the most discussed topics in global politics, the effect of Brexit on Europe’s geopolitical climate has been analyzed time and again.
However, the United Kingdom leaving the European Union will have consequences that go far beyond just policy. Leaving the European Union without a deal or agreement could also have adverse consequences for the financial system.
Coinbase, the largest cryptocurrency exchange based in the United States, has taken over a large part of the European cryptocurrency market last year, with the majority of its customers located in the United Kingdom.
The cryptocurrency exchange, which already began to prepare for Brexit last year, could face serious regulatory setbacks if the United Kingdom will leave the European Union without a deal and began to prepare its customers for the worst scenario.
Under British passport laws, companies established in the United Kingdom have the same rights in all other countries of the European Union. But as a foreign entity, Coinbase had to partner with a local financial institution to process payments from its UK customers.
CB Payments, Ltd., an e-money payment solution based in the United Kingdom, has so far been handling all of Coinbase’s digital currency transactions that have originated in the the European Union.
A no-deal Brexit will affect all European Coinbase accounts and it is expected that CB Payments will no longer be able to provide any services for Coinbase customers.
In short, a no-deal Brexit means that Coinbase is forced to partner with another licensed Coinbase entity within the Europe Union. Coinbase states in her e-mail:
“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.”
In the run-up to October 31, Coinbase will continue to inform its users about the progress and any changes regarding the Brexit.