Crypto exchange Bitpanda is set to relaunch in the UK after receiving approval from the Financial Conduct Authority (FCA), marking its return following a two-year absence.
The Vienna-based firm, which had previously suspended UK operations due to regulatory changes in 2023, will now offer what it claims to be the broadest selection of cryptocurrencies available in the country.
Bitpanda’s return comes at a time of increasing scrutiny over crypto exchanges by financial regulators. The FCA has granted approval to only a handful of platforms, with Coinbase and Kraken being among the most prominent. Coinbase, which received its FCA approval earlier this month, remains the largest crypto exchange in the UK. However, Bitpanda’s key differentiator is its expansive token offering, boasting 500 different cryptocurrencies compared to Coinbase’s 240.
A spokesperson for Bitpanda highlighted the company’s commitment to providing diverse investment options. “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 let people invest the way they want to,” the spokesperson said.
Navigating Regulatory Challenges and Market Expansion
Bitpanda initially withdrew from the UK market in response to the FCA’s updated financial promotion regulations, which introduced stricter compliance measures. The new rules mandated a “cooling-off period” for first-time investors and prohibited referral bonuses, requiring crypto firms to ensure that users demonstrate sufficient knowledge before engaging in cryptocurrency investments.
Despite these challenges, Bitpanda maintained its existing UK user accounts and continued plans for re-entry. CEO Eric Demuth described the FCA approval as a significant milestone. “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,” Demuth said.
As part of its UK expansion strategy, Bitpanda plans to establish a permanent London office and introduce products tailored to the local market. “The UK is home to some fantastic talent, is one of the biggest financial markets in Europe, and will be an important market for us as we continue to grow,” a company spokesperson stated. Deputy CEO Lukas Enzersdorfer-Konrad emphasized the country’s strategic importance, calling the UK “one of the world’s most significant financial hubs” with a “thriving crypto asset economy.”
Investor Caution Amid Crypto Market Risks
While the FCA’s approval of Bitpanda signals regulatory confidence in its operations, investor protections in the crypto sector remain limited. Unlike traditional financial institutions, crypto exchanges do not offer the same safeguards, meaning investors could face substantial losses if a firm goes bankrupt.
Glen Goodman, author of The Crypto Trader, warned of potential risks. “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,” Goodman said. “British crypto investors still have very little recourse if something goes wrong. So the rule is still caveat emptor—buyer beware.”
Founded in 2014, Bitpanda holds multiple regulatory approvals across Europe, including in Germany. Its UK expansion aligns with broader efforts to solidify its presence as a leading European crypto investment platform. However, as the UK crypto market evolves under regulatory oversight, investors must weigh opportunities against the inherent risks of digital asset trading.
