A temporary ban on Faster Payments means U.K. cryptocurrency traders must send funds via SWIFT.
United States cryptocurrency exchange Coinbase has abruptly imposed a minimum deposit amount of 1,000 British Pounds ($1,240) for United Kingdom account holders, staff reportedly confirmed in private emails on July 16.
Report: Coinbase Suspends Faster Payments Deposits in U.K.
Coinbase, which previously allowed U.K. users to deposit fiat funds via the country’s Faster Payments settlement system, has now suspended the service, they said.
Instead, users must use the standard international transfer option, sending funds via SWIFT, subject to a minimum payment amount of 1,000 GBP.
In the emails seen by Cointelegraph, Coinbase support staff did not disclose the motivation for the sudden change, which ends an agreement in place since August last year.
“We’ve temporarily suspended Faster Payments and added support for GBP Swift payments in the interim,” part of the correspondence reads.
It claimed Faster Payments would resume “within the next few months,” but did not specify an exact timeframe.
“For your account’s security and to prevent any potential fraudulent activity, you will be unable to withdraw these funds or send the value of this deposit from Coinbase for 5 calendar days after deposit,” staff added.
Fiat Friction Remains for Crypto On-Ramps
SWIFT payments generally take up to five business days to clear, which makes a deposit from the U.K. subject to a ten-day delay.
The issue adds further complications for U.K. users seeking legitimate access to cryptocurrency markets.
Long an outlying market, the country’s exit from the European Union would firmly end the chances of crypto investors using SEPA payments — a comparatively cheaper bank transfer system available to members of the European Union and European Free Trade Association — in the future.
Coinbase has been approached for comment but did not respond at press time.
