Coinbase Expelled from UK Finance Trade Body Amid Ongoing Banking Tensions

Coinbase lost its membership in UK Finance, the trade organization representing roughly 300 UK banking and finance firms. The board sent a termination notice last week after reviewing its eligibility framework. The exchange may appeal the decision.

Impact on Operations and Licensing

The expulsion does not affect Coinbase’s licences from the Financial Conduct Authority (FCA). Its UK activities continue unchanged, and the firm recently received an FCA investment licence that allows retail users to trade stocks and derivatives on its platform.

Broader Banking‑Crypto Friction

The move comes amid a wider clash between UK banks and crypto firms. A survey by the UK Cryptoasset Business Council in January indicated that banks were blocking or delaying about 40% of payments to crypto platforms, with 70% of surveyed exchanges reporting increased hostility from banks over the past year.

Regulatory Context

The Bank of England plans to maintain a cap on stablecoin issuance, even after lifting limits on individual holdings. Meanwhile, the UK’s comprehensive crypto regulatory framework is set to take effect in October 2027.