Altcoin News: Brexit May Force Coinbase to Transfer European Accounts to Another Jurisdiction

September 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Coinbase, the largest US cryptocurrency exchange, is likely to soon be forced to transfer all European accounts from the UK to another jurisdiction.

Currently, the exchange manages the electronic payment system in the UK through CB Payments. Permission to conduct business was obtained by the company from the Office of Financial Regulation and Supervision of the United Kingdom (FCA).

However, if a withdrawal agreement is not concluded after Brexit, then it is likely that Coinbase will be forced to transfer CB Payment Ltd’s activities to another jurisdiction. The company informed its customers via e-mail about this.

Coinbase also stated that the exchange service that uses these accounts will not be affected if transferred to another jurisdiction. At the moment, the exact timing of the transfer of accounts is unknown, and users decided to warn in advance.

The company made no official statements, and all of the above information was distributed to Coinbase users through emails. One of the exchange’s customers posted a screenshot of a message on the social network Twitter.

While Great Britain was part of the European Union, any company created in the country could function according to general rules throughout the EU. However, if Great Britain leaves the EU on October 31 without any agreement on the withdrawal of funds, then companies will have to obtain a separate license to operate in the EU. In this regard, Coinbase activities in the EU may be suspended for a short period of time.

Author: Marko Vidrih