Jack Mallers, CEO and founder of the financial app Strike, is bringing his invention to the United Kingdom, allowing the use of P2P payments in Bitcoin by leveraging Lightning Network technology.
Thanks to Strike, now residents in the UK, after completing the knowledge test “Appropriateness Assessment”, will be able to freely transfer Bitcoin through the “Send Globally” function.
This is a big step forward for the mainstream adoption of both cryptocurrency and the L2 Lightning Network.
Let’s see all the details below.
The Strike app brings Bitcoin Lightning Network transfers to the United Kingdom
Strike, the financial app based on Bitcoin Lightning Network payments, has officially landed in the United Kingdom, significantly expanding its target market, which now includes 100 countries worldwide.
The news came directly from the post on the official X profile of Strike, where the section “Strike UK” was presented and all Bitcoin-enabled services were introduced in the largest island of Europe.
— Strike UK (@strikebtc_uk) June 25, 2024
Starting today, the 67 million residents in the country will be able to use the app to buy, sell, send, withdraw, or make global payments in cryptocurrency, all at a reduced cost and with high execution speed guaranteed thanks to layer-2 Lightning Network technology.
Jack Mallers, CEO e fondatore di Strike ha utilizzato queste parole per descrivere l’espansione del suo progetto nel Regno Unito, che rappresenta la sesta economia mondiale:
“We are incredibly excited to offer our services in the United Kingdom, in compliance with local regulations for bitcoin and crypto companies. While some Bitcoin companies have withdrawn from the United Kingdom, we are expanding our presence, doubling our commitment to further Bitcoin adoption globally, and advancing financial innovation and inclusion in the United Kingdom.”
With immediate effect, users in the United Kingdom can deposit GBP within the Strike app (iOS and Android) without limitations from their bank account, automatically convert the FIAT currency into Bitcoin, schedule recurring purchases, and of course, cash out.
Signing up for the app is very simple and to create a Bitcoin wallet associated with a Lightning address, only an email format like username@strike.me is required, greatly simplifying the usual cryptographic registration process.
The company behind the visionary Jack Mallers has also revealed that customers can also transfer their Bitcoin within non-custodial wallets that use Lightning Network technology, taking advantage of instant payments.
In addition, Strike offers the possibility to execute free withdrawals on the chain, avoiding negative experiences with network congestion. However, this last function requires a confirmation time of about 24 hours.
The specialty of Strike, however, refers to the ability to execute transfers in any area of the world enabled with the app, taking advantage of the “send globally” feature that allows converting GBP into foreign currencies in eligible countries, including Benin, Ghana, Ivory Coast, Kenya, Nigeria, Rwanda, Senegal, Togo, Philippines, Mexico, and Vietnam, using Bitcoin’s Lightning Network as the underlying technology.
The launch of Strike in the United Kingdom follows another recent expansion move by the payment company that in April made its debut in the European territory.
For Bitcoin, it is a great opportunity to expand its pool of active wallets and introduce the trustless qualities of the cryptocurrency to a new audience.
The stringent crypto regulation in the United Kingdom
The entry of Strike into the United Kingdom is not, however, exempt from specific regulatory obligations for crypto activities that exchange cryptocurrencies like Bitcoin.
All users UK who want to use the app to transfer money in BTC with Lightning technology must indeed pass a knowledge test called “Appropriateness Assessment”.
This is a simple questionnaire in which investors must provide information about their financial situation and classify themselves within specific categories.
In detail users have two classification options: “Investitore con restrizioni” and “Investitore con un patrimonio netto elevato”.
The primi allocate less than 10% of their assets to high-risk investments, such as those in cryptocurrencies, while the secondi refer to individuals who have earned more than 100,000 pounds, equivalent to 127,000 dollars, or who have a net worth exceeding 250,000 pounds, equivalent to 317,000 dollars.
If none of these two options apply to a specific subject, the Strike app states:
“If none of these statements apply to you, you are not eligible to use Strike at this time”.
Great news! @Strike has finally launched in the UK.
If (like us) you've been eager to get going with the app, please take a moment to watch the onboarding walkthrough below.
Because of @TheFCA's regrettable and in our view incorrect decision to label #Bitcoin as a 'restricted… https://t.co/nDwbvAFvel pic.twitter.com/4Hv26Hd7uc
— Freddie New (@freddienew) June 25, 2024
The regulatory obligations imposed in this matter by the “Financial Conduct Authority” of the United Kingdom (FCA), which considers Bitcoin as a “limited investment on the mass market“, require investors to also complete a comprehension quiz on the risks associated with cryptocurrency investments and wait 24 hours after passing it.
The same FCA in 2021 had banned the exchange of cryptographic derivatives and exchange-traded products to retail investors, limiting the country’s expansion in Bitcoin markets to only ETN that landed on the London Stock Exchange in March of this year.
The United Kingdom is seeking to regulate the crypto industry in parallel with Europe through the MiCA, sometimes even oppressing the development of the sector: in December, a new regulation for the supervision of the Digital Securities Sandbox was introduced with the aim of facilitating the adoption of digital assets in all financial markets under the supervision of The Bank of England and FCA.
The result was not, however, as hoped, since some companies, including the famous exchange Bybit, found themselves forced to suspend their services in the country due to stringent impositions.
By the end of July, as supported by the Ministry of the Treasury Bim Afolami, a new regulatory framework for crypto activities could arrive, presumably more inclusive than the current one.
We hope that with Strike and with new legislation the United Kingdom can rediscover the passion for investments in cryptocurrencies and the freedom to trade Bitcoin without too many limitations with the support of the Lighting Network.
