United Kingdom’s banking sector has made its first major step towards cryptocurrency market. ClearBank the first clearing bank of UK for more than 250 years has signed a deal with London Block Exchange. This has been done in order to make the virtual currency transaction more feasible. The customers will be able to hold their funds within the country and nor overseas.
According to Reuters, multi-billion dollar ClearBank has signed up with cryptocurrency exchange Block Exchange (LBX). This deal will permit the regulator to move their funds in the country itself. Typically, the exchanges have their accounts based abroad in other countries mostly in Gibraltar, Poland, and Latvia. In this way, the users transfer the currency value in Pounds and change them into Euros. However, this agreement will change this pattern over the night for London based investors.
Crypto Trading In European Market
In the recent times, crypto space has made its way to European countries. There are a few crypto friendly countries which have facilitated this business. However, this association is likely to get affected due to impending Brexit. The experts are predicting that this will led to attracting more crypto-based agencies to join the alliance in the upcoming days.
British startup ClearBank is likely to give a tough competition to some of the major banking institutions like Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland. Trading of the digital asset is predicted to bring in huge investment this year. Some of the banks like Lloyds have prohibited the use of credit cards to purchase cryptocurrencies. On the other hand, Barcalys opened an account for U.S.-based crypto exchange Coinbase recently. Also, there have been varied views from experts about the business prospects of virtual currency and their secured ecosystem.
Small finance institutions have been facilitating the cryptocurency market by allowing the trade. They are more willing as there isn’t much of competition for them from the big banks.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]