Strike launched its popular Bitcoin BTC -1.69% and Lightning Network payments app in the United Kingdom on Tuesday, enabling eligible individuals and businesses to buy, sell, send, withdraw and make global payments.

Strike founder and CEO Jack Mallers identified the UK’s 67 million population and sixth-largest global economy as presenting “significant opportunities” for Bitcoin adoption. The UK launch follows the firm’s European rollout in April, with Strike now available in 100 countries and territories globally — including the U.S., Latin America and Africa.

“We’re incredibly excited to offer our services in the UK, while complying with local regulations for bitcoin and ‘crypto’ companies,” Mallers said in a statement shared with The Block. “While some Bitcoin companies have retreated from the UK, we are expanding our presence, doubling down on our commitment to further Bitcoin adoption globally, and driving financial innovation and inclusion forward in the UK.”

The custodial iOS and Android app enables UK users to buy bitcoin directly with free unlimited GBP deposits from their bank account instantly, where supported, as well as automatic conversion and scheduled recurring purchases, according to the firm. The firm added that customers can sell their bitcoin and withdraw it to their bank accounts, transfer it to their self-custodial wallet, or make payments instantly, without limits, over the Bitcoin or Lightning Network.

Strike also offers “free” on-chain withdrawals, helping users to navigate high-fee periods of network congestion and designed to support Bitcoin’s use at scale, according to the team. However, users must be flexible enough to accept a target confirmation time of around 24 hours, with faster on-chain transactions still requiring a sliding scale of fees.

Leveraging the Lightning Network

Lightning operates as a network of bi-directional payment channels on top of the Bitcoin blockchain, enabling fast and cost-effective micropayments.

All Strike customers have a Lightning Address — using the email-like format of [email protected] — to simplify the process of receiving payments compared to more complex Lightning invoices. 

Strike users can select whether to receive Lightning Address payments in bitcoin or GBP. Similarly, senders can choose whether to send from their bitcoin or GBP balances over Lightning. Alternatively, users can pay or issue zero-value Lightning invoices to send or receive any amount of bitcoin to or from their bitcoin or GBP balances.

UK users can also leverage Strike’s global peer-to-peer transfers via Lightning, allowing them to send from their GBP balance to a friend’s Strike account instantly anywhere Strike is available, with the value received as bitcoin, GBP (in the UK), euros (in Europe), U.S. dollars (in the U.S.) or USDT (in supported global regions). 

Additionally, Strike’s “Send Globally” feature allows UK users to make fast, low-cost local currency remittances, turning GBP into foreign currencies in eligible countries, including Benin, Ghana, Ivory Coast, Kenya, Nigeria, Rwanda, Senegal, Togo, the Philippines, Mexico and Vietnam, using Bitcoin’s Lightning Network as a global payment rail under the hood.

Strike Private also offers a “white glove” service for high-net-worth individuals, family offices and corporations looking to buy and sell larger amounts of bitcoin over £100,000 ($127,000).

Passing a knowledge test

To comply with UK regulations, the signup process is slightly different for UK users, requiring them to provide their investor classification and pass a knowledge test called an “Appropriateness Assessment.”

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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. “High net worth investors” earned over £100,000 ($127,000) in the past 12 months and/or have net assets of more than £250,000 ($317,000).

“If neither of these statements apply to you, you are not eligible to use Strike at this time,” the app reads.

The knowledge test includes understanding the risks involved in investing in bitcoin, that Strike is a custodial provider managing assets on behalf of users and that no investor protection is available. Users have two attempts to pass the test before a 24-hour pause. Once passed, there is also a 24-hour “cooling-off” period before users can access the Strike app.

Strike Learn provides an education hub to help users understand more about the service, Bitcoin and potential risks. UK customers are also shown risk warnings to comply with local rules — with its financial promotions in the country approved by the FCA-regulated firm Englebert Ltd.

UK crypto rules

In 2021, the UK’s financial regulator, the Financial Conduct Authority, banned the sale of crypto derivatives and exchange-traded products to retail investors. However, the UK's stance on cryptocurrency regulation has subsequently been evolving, with crypto ETNs launched on the London Stock Exchange in May — though they are still not available to retail traders, unlike the U.S. spot Bitcoin exchange-traded funds.

The UK’s Financial Services and Markets Act 2023 provided the groundwork for the nation’s regulators to oversee stablecoins and other crypto activities, placing crypto assets within the same regulatory framework as traditional financial services last year.

As part of FSMA, the UK introduced new regulations for supervising the country’s Digital Securities Sandbox in December — aiming to facilitate the adoption of digital assets across financial markets with oversight from The Bank of England and the FCA.

The UK’s new crypto advertising rules, regulated by the FCA, were introduced in October last year. However, the regulatory changes caused some crypto firms, like Bybit, to suspend services in the UK. Others, like Coinbase, have started requiring similar risk-acknowledgment forms from UK users to comply with FCA rules.

In April, UK Economic Secretary to The Treasury Bim Afolami said the government would legislate by the end of July on a new regulatory framework for crypto assets, including the oversight of stablecoins, crypto staking, exchanges and custody services, building on the FSMA. However, those plans have subsequently been derailed by the election campaign.