UK Bank Closes Safello Accounts 6 Weeks After Entering Partnership
Only six weeks after bitcoin exchange Safello announced local deposit options for UK customers, the firm's banking partner is closing its accounts.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/PRP4O6NFYFHDZPMU6PQYNKEAB4.png)
Six weeks after Swedish-based bitcoin exchange Safello announced rapid 'Faster Payments' deposits for UK customers, its banking partner has withdrawn its services and will close its accounts as of tomorrow.
Safello, which received the 14-day closure notice from the undisclosed UK bank on 13th January, said: "there was no base for the decision to shut our accounts down. Nor were we unclear in our communication towards the UK bank prior to getting our accounts approved".
Frank Schuil, Safello's CEO and co-founder, told CoinDesk that the exchange will continue to support international wire transfers for British pounds and that the firm would reactivate Faster Payments once a new bank account had been set up.
Faster Payments deposits were halted on Friday "to prevent any issues with people's transfers", he explained.
'Sign of the times'
In a statement, Safello said that it did "everything in its power to reverse this decision", adding that its banking partner was fully aware that it was a bitcoin company at the start of the relationship.
When asked about the potential ramifications of the closure, Schuil said:
Despite the bad news for its UK-based customers, Schuil said the team perceived the decision as "a sign of the times".
He continued:
Expansion in the Nordics
The news comes just as Safello also announced that it was entering the Norwegian and Danish markets.
Having spotted a space in the market, Schuil said:
Schuil stressed that the company would continue to push forward in order to make local payment methods available to its customers, saying:
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.