The two anonymous people cited that the UK Cryptocurrency exchange has struck a rare deal to open a bank account with British start-up ClearBank.
ClearBank was launched in 2017 by Nick Ogden, the founder of payments group Worldpay, with a purpose to built clearing bank. According to the source, the bank has reached London Block Exchange, the UK’s well-known digital wallet providers. Since the bank has strike the rare deal to allow domestic customers to trade cryptocurrencies without moving their money abroad.
Moreover, lenders of British and Europeans have majorly avoided cryptocurrencies that have come under increasing analyses from regulators.
One person who declined to be named with knowledge of the agreement said,
“This will make it easier for British customers of the exchange to buy and sell cryptocurrencies by making transactions faster and cheaper”.
Earlier in March, London payments Service offers on-shore accounts and access to the Faster Payments Services. Therefore, the UK exchange and ClearBank both declined to comment on Friday.
Traditional lenders are more unwilling to be business with firms that deal with bitcoin and other cryptocurrencies. It is because of money laundering concerns and predictions of a regulatory crackdown.
Recently in March, San-Francisco based exchange, Coinbase have strike a deal to open a bank account with Barclays. Therefore, crypto companies have been forced to open accounts outside Britain likely to be in Poland, Latvia, and Gibraltar. Moreover, that has been a question mark about the UK to become a global hub for the fast-growing fintech industry.
Furthermore, ClearBank was developed as clearing bank offering services to building societies, credit unions, and fintech firms.