Strike Launches Bitcoin Payments App in the UK Following European Rollout
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Loading... - Kelly Dyson
- 27 Jun 2024
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Strike, a well-known Bitcoin and Lightning Network payments app, has launched in the United Kingdom, allowing individuals and businesses to buy, sell, send, withdraw, and make global payments. This move follows the app's European rollout in April and expands its availability to 100 countries, including the U.S., Latin America, and Africa.
Founder and CEO Jack Mallers highlighted the UK's significant opportunities for Bitcoin adoption, given its population of 67 million and status as the sixth-largest global economy. Despite other Bitcoin companies retreating from the UK, Strike is expanding its presence, aiming to promote financial innovation and inclusion.
Key Features of the Strike App:
-Direct Purchases and Sales: Users can buy Bitcoin directly with free unlimited GBP deposits from their bank accounts, sell Bitcoin, and withdraw to their bank accounts.
-Flexibility in Transactions: Users can transfer Bitcoin to self-custodial wallets or make instant payments without limits via the Bitcoin or Lightning Network.
-Free On-Chain Withdrawals: Strike offers free on-chain withdrawals with a target confirmation time of around 24 hours, with faster transactions available at varying fees.
-Lightning Network Integration: Strike uses the Lightning Network to facilitate fast, cost-effective micropayments, simplifying the process with Lightning Addresses.
-Global Transfers: UK users can send funds from their GBP balance to friends' Strike accounts globally, converting to local currencies where necessary.
-Send Globally Feature: Enables quick, low-cost remittances from GBP to foreign currencies in eligible countries using the Lightning Network.
-Strike Private Service: Offers a "white glove" service for high-net-worth individuals and corporations for transactions over £100,000.
Regulatory Compliance:
UK users must complete an investor classification and knowledge test called the “Appropriateness Assessment” to comply with local regulations. Users can classify as "Restricted investors" or "High net worth investors," with specific criteria for each category. The test assesses understanding of the risks involved in Bitcoin investing and Strike's custodial role, requiring two attempts to pass before a 24-hour pause and a subsequent 24-hour cooling-off period.
Educational and Support Resources:
Strike Learn provides an education hub to help users understand the service, Bitcoin, and associated risks. The app also displays risk warnings and complies with local regulations, with financial promotions approved by the FCA-regulated firm Englebert Ltd.
UK Crypto Regulatory Landscape:
In recent years, the UK has evolved its stance on cryptocurrency regulation. The Financial Conduct Authority (FCA) banned the sale of crypto derivatives to retail investors in 2021, but has since introduced crypto ETNs on the London Stock Exchange and established new regulations for digital assets under the Financial Services and Markets Act 2023. The Act aims to integrate crypto assets within the same framework as traditional financial services. New crypto advertising rules were also introduced, causing some firms to suspend services, while others, like Coinbase, implemented risk acknowledgment forms for compliance.
The UK government plans to legislate a new regulatory framework for crypto assets by the end of July, including oversight of stablecoins, staking, exchanges, and custody services, although these plans have been delayed by the election campaign.
