Crypto exchange Bitpanda will return to the UK after a two-year hiatus after receiving approval from the Financial Conduct Authority.
Bitpanda was forced to halt UK trading in 2023 in the wake of changes to financial promotions rules, but the City watchdog will now allow the exchange to expand back into the the country.
And Bitpanda says it will relaunch its platform with the largest variety of crypto tokens available in the UK.
Just a handful of other crypto exchanges are approved by the FCA, with the largest among them Coinbase and Kraken.
Coinbase received its FCA approval earlier this month, making it the UK’s largest crypto exchange.
While far small, Bitpanda offers access to a wider array of crypto tokens than its competitors, with 500 available.
Coinbase, in comparison, lists just 240 currencies on its exchange.
A spokesperson for Bitpanda said: ‘Our crypto offer is going to be the broadest available in the UK with over 500 coins currently listed, alongside products, such as staking and savings plans, that are simple to use and let people invest the way that they want to.’
Alongside its suite of tokens, Bitpanda will also offer staking, savings plans and crypto indices.
UK relaunch: Bitpanda will now offer 500 different crypto tokens to UK investors
Bitpanda makes UK return
The firm previously operated in the UK but was forced to halt its services back in 2023, after the FCA altered its financial promotion regulations.
This mandated a ‘cooling-off period’ for first time investors and the banning of referral bonuses by firms.
As a result, the onus is on crypto firms to verify that the users of their platform have the necessary knowledge to invest in cryptocurrencies.
Existing Bitpanda users were able to retain their accounts.
Eric Demuth, chief executive of Bitpanda, said: ‘This was the last missing piece to truly serve all Europeans. Now, our focus is clear: deliver a product that meets the needs of UK investors.’
Bitpanda plans to reopen a permanent London office and develop products specifically for the UK market.
The firm’s spokesperson told This is Money: ‘We didn’t let any staff go as a result of these changes as we always planned to resume onboarding.
‘The UK is home to some fantastic talent, is one of the biggest financial markets in Europe, and is going to be an important market for us as we continue to grow.’
Lukas Enzersdorfer-Konrad, deputy chief executive of Bitpanda, added: ‘The UK is one of the world’s most significant financial hubs, home to some of the most innovative companies and a thriving cryptoasset economy – the UK is the perfect market for Bitpanda.’
‘British investors demand a platform that is safe, secure, and built for the future – Bitpanda is exactly that. Our entry into the UK marks just the beginning of what we plan to bring to this market.’
Crypto buyers beware
Bitpanda was founded in Vienna in 2014, and holds a number of European regulatory approvals, including in Germany.
However, it is important for investors to note that while the FCA has now approved a number of crypto firms to operate in the UK market, they are not fully protected.
This means that a company going bust could see investors lose their money.
Glen Goodman, author of The Crypto Trader, told This is Money: ‘The FCA is satisfied Bitpanda has checks in place to help prevent money laundering and other financial crime.
‘But that doesn’t mean British crypto investors are protected if the firm goes bankrupt, or if they lose their money on an investment through Bitpanda.
‘British crypto investors still have very little recourse if something goes wrong. So the rule is still caveat emptor – buyer beware.’
