Coinbase UK Discloses 22% Profit Drop in 2019

The British arm of the U.S. cryptocurrency exchange Coinbase saw a sharp downturn in business in 2019, with annual profits dropping by nearly a quarter year on year as a result.

In a filing with the U.K.'s business registrar Companies House on Tuesday, Coinbase UK reported turnover of €94.8 million (US$114.9 million) in 2019, down 38% from €153 million ($185.6 million) in 2018.
The turnover is derived from its cryptocurrency exchange service and debit card service, per the filing.
Coinbase UK reported after-tax profits of €5.1 million ($6.2 million) in 2019, down by 22.5% from €6.6 million ($7.9 million) the year before. Numbers have been rounded off.
According to the filing, Coinbase had no U.K. staff incurring costs in 2019 or the previous year, suggesting the local exchange operation is run entirely from its California headquarters.
Despite the drop in turnover, the aggregate value of customer funds held in wallets was €1.493 billion ($1.81 billion) at the close of 2019, up significantly from €741 million ($898.5 million) on Dec. 31, 2018.
The exchange said it will continue to monitor the U.K.’s departure from the European Union, the so-called Brexit, which will have an impact on the digital exchange's operational structure.

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Tanzeel Akhtar

Tanzeel Akhtar is a reporter based in London,UK.

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