This past few days UK investors have been stagger to learn that Coinbase, a crypto organization and investing communities, has assured to stop the activity on the service it presents to UK retail investors.
Coinbase quoted it would be restricting the minimum amount UK investors could deposit to £1,000, and that it had removed the UK Faster Payments Service, which grant the customers to easily and swiftly buy popular cryptocurrencies like BTC and ETH.
So what’s left for UK?
UK customers will now have to use the standard international option, that is transferring money using SWIFT.
UK country is not part of Coinbase’s priorities by showing they closed their doors for UK. It’s very humiliating because UK retail investors have helped make Coinbase the success story it is today. By making withdrawals even regress and by increasing the minimum deposit to £1,000 they have effectively closed themselves off the UK retail investor market.
If there was a systemic liability with the Faster Payments technology, Coinbase Pro customers would moreover affected, but this is not the real situation. The same customers who feel the growth of Coinbase, are the same customers who are left to hang out to dry. To compensate UK investors Coinbase says it is offering reduced trading fees for two weeks in recognition of customers’ loyalty.
But UK customers are wise and smart. This is a key example of Coinbase have recourse their position to ‘give with one hand, but take with another’.
Now, if I want to deposit £500, the only feasible option is via card payment, a method which will cost me 4% for the privilege. If they offered me zero trading fees, or even some cashback on a £500 trade it would yet result in a net loss.