Cryptocurrency exchange Coinbase to allow Faster Payments

As we covered in a blog last month, UK-based Coinbase users had been complaining that withdrawing money from the exchange was nearly "impossible", because it involved using a Single Euro Payments Area (SEPA) transfer which is basically a bank transfer that crosses international borders.

But Coinbase has now announced that the Faster Payments Service (FPS) – the usual way you send money between UK bank accounts – will replace SEPA transfers.

The US-based digital currency exchange allows you to trade cryptocurrencies such as Bitcoin and Litecoin for what's known as 'fiat' currency – ie, currency run by a country, such as pounds, dollars and euros.

Coinbase says Faster Payments will be rolled out to UK customers "in the coming weeks", but it hasn't given a strict timeframe.

Want to withdraw money from Coinbase now? See our blog.

What is the Faster Payments Service?

The FPS is a bank transfer system that allows users to send money between bank accounts in a few hours.

FPS is typically free and allows you to send significant amounts of money, with some banks letting you transfer up to £250,000.

This is useful for Coinbase users because at the moment, anyone using the exchange to withdraw cash, for example, has to send their money outside the UK, using a SEPA transfer.

Most banks charge customers for making these types of transfers, and the process for completing them was often long, with many Coinbase users saying it was difficult.