Strike, a popular Bitcoin payments app, has launched its services in the United Kingdom, marking a significant milestone in its global expansion. This move comes after a successful rollout in Europe and Africa earlier this year, bringing the total number of countries where Strike operates to over 100.
The launch in the UK opens up new opportunities for both individuals and businesses to engage in fast, low-cost transactions using Bitcoin and the Lightning Network.
Strike app, founded by Jack Mallers, aims to make Bitcoin accessible to everyone through its user-friendly mobile app. The app allows users to buy, sell, send, withdraw, and make global payments with Bitcoin.
Related: Bitcoin Payment App Strike To Expand Operations To 65 Countries
The key feature of Strike is its use of the Lightning Network, which enables fast and cost-effective micropayments. This technology operates as a network of bi-directional payment channels on top of the Bitcoin blockchain, making it ideal for quick and inexpensive transactions.
Jack Mallers underscored the importance of the latest launch, stating:
“With a population of 67 million, the UK is the second-largest economy in Europe and the sixth-largest globally, presenting significant opportunities for Bitcoin adoption.”
He added: “Our work is far from done,” highlighting that Strike is dedicated to expanding Bitcoin usage and offering their services worldwide, regardless of regulatory challenges.
Strike offers several features designed to make Bitcoin transactions seamless for UK users.
The app allows users to buy bitcoin directly with free unlimited GBP deposits from their bank accounts. Users can also set up automatic conversion and scheduled recurring purchases.
Additionally, customers can sell their bitcoin and withdraw the funds to their bank accounts, transfer bitcoin to their self-custodial wallet, or make instant payments over the Bitcoin or Lightning Network.
One of the standout features of Strike is the “Send Globally” function. This allows UK users to make fast, low-cost local currency remittances by turning GBP into foreign currencies in eligible countries.
These countries include Benin, Ghana, Ivory Coast, Kenya, Nigeria, Rwanda, Senegal, Togo, the Philippines, Mexico, and Vietnam. The Bitcoin Lightning Network acts as a global payment rail, facilitating these transactions.
To comply with UK regulations, Strike has implemented a robust onboarding process for new users. This includes an “appropriateness assessment” quiz that tests users’ knowledge about Bitcoin.
Users are required to pass this quiz to use the app, ensuring they understand the risks involved in investing in bitcoin. The app also includes customary risk warnings to inform users about the potential downsides.
Users have two classification options: “Restricted investor” and “High net worth investor.”
Restricted investors allocate less than 10% of their net assets to high-risk investments, while high net worth investors have earned over £100,000 in the past 12 months or have net assets exceeding £250,000.
If users do not meet these criteria, they are not eligible to use Strike at this time. “If neither of these statements apply to you, you are not eligible to use Strike at this time,” the app states.
Once users pass the knowledge test, there is a 24-hour cooling-off period before they can access the app. This additional step ensures that users have ample time to consider their decision before engaging in Bitcoin transactions.
Strike’s expansion into the UK is part of a broader strategy to make Bitcoin accessible worldwide. Strike believes that its growth demonstrates confidence in Bitcoin’s future.
Mallers added:
“We’re incredibly excited to offer our services in the UK, while complying with local regulations for bitcoin[…] while some Bitcoin companies have retreated from the UK, we are expanding our presence, doubling down on our commitment to further Bitcoin adoption globally.”
Strike also plans on serving high-net-worth individuals, family offices, and corporations looking to buy and sell larger amounts of bitcoin through Strike Private, a white-glove service offered by the company.
One of the key technologies behind Strike’s success is the Lightning Network.
This second-layer solution for the Bitcoin blockchain enables instant, unlimited, and free payments globally between Strike users. The Lightning Network simplifies the process of receiving payments with a Lightning Address, which uses an email-like format (e.g., [email protected]).
Users can choose whether to receive Lightning Address payments in Bitcoin or GBP. Similarly, senders can select whether to send from their Bitcoin or GBP balances over Lightning.
Alternatively, users can pay or issue zero-value Lightning invoices. These invoices give the payer of the invoice the freedom to set the amount themselves, making it possible for participants to send or receive any amount of bitcoin to or from their Bitcoin or GBP balances.
The Lightning Network also enables global peer-to-peer transfers via Strike, allowing UK users to send money from their GBP balance to a friend’s Strike account anywhere in the world.
The recipient can receive the value as Bitcoin, GBP (in the UK), euros (in Europe), U.S. dollars (in the U.S.), or USDT (in supported global regions).
The UK has seen significant changes in its regulatory landscape concerning digital assets.
In 2021, the Financial Conduct Authority (FCA) banned the sale of digital-asset derivatives and exchange-traded products to retail investors. However, the UK’s stance on the matter has been evolving.
The Financial Services and Markets Act 2023 provided the groundwork for the UK’s regulators to oversee stablecoins and other digital asset activities. This act placed these assets within the same regulatory framework as traditional financial services.
As part of this regulatory framework, the UK introduced new regulations for supervising the country’s Digital Securities Sandbox, aiming to facilitate the adoption of digital assets across financial markets.
In addition, the UK introduced new digital-asset advertising rules in October last year. These changes caused some firms to suspend services in the UK. However, others, like Coinbase, have started requiring similar risk-acknowledgment forms from UK users to comply with FCA rules.
Despite these regulatory challenges, Strike remains committed to its mission of making Bitcoin accessible globally.
The company works closely with the FCA-registered firm Engelbert to ensure compliance with regulatory requirements regarding digital asset promotions. This collaboration helps Strike navigate the complex regulatory environment while continuing to offer its innovative services.
To help users understand more about the service, Bitcoin, and potential risks, Strike has launched Strike Learn.
This education hub provides resources and information to educate users about the world of Bitcoin and the functionalities of the Strike app. UK customers are shown risk warnings to comply with local rules, ensuring they are well-informed before engaging in Bitcoin transactions.
As Strike continues its global expansion, the company is focused on overcoming region-specific regulatory hurdles while delivering key functionality to its users. The UK launch represents a significant step forward in Strike’s mission to promote Bitcoin adoption and drive financial innovation.