UK Finance reportedly terminated Coinbase's membership after reviewing its membership framework and concluding that crypto exchanges did not meet its criteria. Coinbase retains the right to appeal the decision.

Bloomberg Law reported on Sept. 23 that UK Finance's board notified Coinbase of the decision in a letter sent the previous week. The termination does not affect Coinbase's regulatory status in Britain because UK Finance is an industry trade association, not a licensing authority.

UK Finance Removes Coinbase After Membership Review

According to the reports, UK Finance reviewed its membership framework and determined that crypto exchanges did not satisfy its standards. The group has not disclosed what the revised or applicable standards are, although reports state that Coinbase can appeal its removal.

The decision excludes Coinbase an organization representing around 300 financial services institutions, including major banks and payment companies. Trade bodies of this kind typically coordinate policy advocacy and consultation responses for their members, giving firms a collective voice with policymakers and regulators. Many people in the crypto industry view the exclusion as a sign that traditional financial institutions are pushing back against the sector.

Digital assets have gained popularity and become an increasingly important policy issue worldwide, while traditional financial institutions are also competing directly with crypto companies. In the United States, banks and crypto firms have clashed over stablecoin yield in connection with the Clarity Act.

Commercial banks in the United Kingdom have also restricted access to banking services for crypto businesses. The Financial Conduct Authority (FCA) has opposed blanket restrictions by banks, but industry stakeholders say many institutions may continue limiting services to crypto companies even under the FCA's crypto regime, which is scheduled to take effect in October 2027.

The membership termination could limit Coinbase's advocacy strength in the United Kingdom, but it does not change the exchange's regulatory permissions there. UK Finance does not serve as a licensing body. Whether Coinbase exercises its right to appeal is the immediate next development to watch.

Coinbase Stock Slips Below $200

Coinbase shares declined slightly, falling 1% to $198 after recently moving above $200 for the first time since May. COIN had risen more than 20% over the previous five days but remained down 12% for the year.

The stock's performance mirrored Bitcoin's movement. Bitcoin was down 2% on the day after gaining 11% over the previous seven days. The flagship crypto asset was trading at around $84,000 after rising from below $60,000 to above $80,000 in three months. It was also reported to be down about 4% at the time.

This article is for informational purposes only and does not constitute financial or investment advice.

Source: The Market Periodical