Users at Coinbase will now be able to deposit and withdraw funds in British Pound, the San Francisco company announced on Wednesday.
Until now, Coinbase UK users had to convert their cryptocurrency holdings into Euro and then into pound sterling via international transfers. The process owed costly intermediaries; for instance, SEPA fees that could go as much as ¢10 per transaction. The EUR-to-GBP conversion also used to take several days to finish. However, with the GBP’s addition to Coinbase portfolio, UK users can expect same day deposits and withdrawals at nominal intermediary costs.
Over the years, Coinbase has grown from a small Bitcoin wallet startup to an established crypto-trading house. The company now caters to customers of different trading needs through its variety of product offerings. For individuals, Coinbase offers its signature wallet services; while for active and institutional traders, the company provides a dedicated digital asset exchange called Coinbase Pro, and a diversified liquidity pool called Coinbase Prime, respectively.
“Faster payments will benefit all UK customers, enabling almost immediate transfers,” the company blog reads. “This is essential for Coinbase Pro and Coinbase Prime customers in particular who will now be able to transfer funds quickly.”
The effort could also improve Coinbase standing in the UK market. As of now, Coinbase’s UK market share stands around 19.34%, which is way far behind – and second to – Luno. Known by its former name, Bit-X, Luno currently acquires 57.53% of the global BTC/GBP market share.
Coinbase, meanwhile, hosts the second largest Bitcoin volume against all fiat currencies, with its latest semi-annual standing pointing to 13.03% market share. The firm has recorded 3.07M BTC worth of combined USD and EUR volume in the past six months. As for GBP, the Coinbase BTC volume is close to 64k.
Coinbase, being an exclusive digital currency firm, has obtained a bank account in the UK. The company already has an e-money license issued by the UK’s Financial Conduct Authority (FCA), especially when cryptocurrencies remain unregulated.
Nevertheless, the FCA is said to have been working closely with the Bank of England and the UK Treasury to develop a coherent strategy for cryptocurrency regulations. Their approval of companies like Coinbase, meanwhile, could decently improve Bitcoin’s future in the world’s fifth largest economy.
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Last modified: May 20, 2020 6:20 PM UTC