As of July 29, Coinbase will no longer be servicing its Canadian customers, informing them that they must change their existing CAD balances to Bitcoin or have it relocated to their bank account.
The San Francisco-based company, who is a leading Bitcoin exchange, sent out an email to its customers informing them of the upcoming changes. It will further add to the woes of Canadians who haven’t had a great year when it comes to Bitcoin exchanges offering them services.
Coinbase stated in an email that:
As of August 1, Coinbase’s Canadian payments provider, Vogogo, will be shutting down its payment processing business. When this occurs, Coinbase will no longer be able to support Canadian EFT transfers, Interac transfers, or the storage of customer CAD on Coinbase.
It further stated that all Canadian dollars stored with Coinbase must be withdrawn off-site or converted to cryptocurrency by July 29 with customers facing heavy fees if they are unable to do so.
Calgary-based online payments service provider, Vogogo announced on July 5 that it was terminating its payments service after the completion of its risk management business was sold. It was only in 2014, that the company has raised $8.5 million to improve Bitcoin exchange security before going live.
With Coinbase’s expansion to Canada taking place less than a year ago, this is likely to cause an effect within the cryptocurrency industry as Kraken is another exchange that also uses the service.
This news, however, comes in light of Coinbase announcing that they received a $10.4 million investment from the Bank of Tokyo Mitsubishi UFJ (BTMU), the bank’s Mitsubishi UFJ Capital unit and Sozo Ventures, despite the fact that it doesn’t, as yet, offer exchange services in Japan.
However, while the company said that it doesn’t offer a cryptocurrency exchange service in Japan they are committed to continuing their international expansion and look forward to working with BTMU.
The Coinbase blog said:
Partnering with leading global financial institutions is a key part of our strategy and we are thrilled to be working with BTMU.
Featured image from Shutterstock.
Last modified: June 10, 2020 3:53 PM UTC