Cryptocurrency and wallet service Coinbase (NASDAQ: COIN) has suddenly introduced a raft of new restrictions for U.K. users, including a minimum deposit threshold and extended payment processing time, Cointelegraph reported.
According to leaked private emails obtained by the crypto news outlet, Coinbase is reportedly introducing a mandatory £1,000 minimum for deposits by SWIFT, after suspending access to the Faster Payments network, which had previously allowed more flexible deposits.
The changes will also see users restricted from sending crypto for five days following their deposit, as part of a series of measures the firm says are necessary to combat rising levels of fraud and theft.
The new measures have been introduced out of the blue, and are likely to cause significant problems for some U.K. users, including consumers who will now no longer be able to feasibly use Coinbase for handling smaller transactions.
Claiming it would resume using the Faster Payments infrastructure “within a few months,” the Coinbase emails reveal the firm is concerned about its ability to tackle frauds perpetrated against cryptocurrency users, according to the report.
It stated, “We’ve temporarily suspended Faster Payments and added support for GBP Swift payments in the interim. 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.”
SWIFT payments generally take around 5 days to clear into the receiving bank account, and with the 5 day delay in processing thereafter, the news means U.K. users will now be forced to wait 10 days to transact through the platform.
Even still, transactions are subject to the £1,000 minimum, a figure it has been suggested will alienate a large number of customers currently using the Coinbase platform.
The news will be a significant blow for cryptocurrency exchange users in the U.K., at a time when things are set to become even more challenging against the backdrop of the U.K.’s exit from the European Union.
This could see exchanges no longer able to use the SEPA network, similar to Faster Payments but only available to banks within the EU.
As a result, U.K. users will find it much more challenging to buy and sell cryptocurrencies until Coinbase is able to take care of the enhanced fraud risk.
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