After six years in operation, Jack Dorsey decided it was time to suspend the services for the Bitcoin-friendly application Cash App in the United Kingdom.
Cash App Face Regulatory Hurdles
On September 15, the consumer-payments platform Cash App which offers users money transfer service through a mobile application will exit the UK.
The decision is an aftermath of the regulatory hurdles that Cash App has been faced with. The platform came alive in 2013 under the umbrella of Jack Dorsey-owned Block Inc. Five years after this initial launch, it found its way to the UK. This made the region the first international market for Cash App.
However, the financial platform began to face some regulatory challenges. In 2022, the Consumer Financial Protection Bureau (CFPB) took Block Inc. to a federal court. This was on account of investigation related to Cash App’s handling of complaints and disputes. The CFPB claimed that it reached out to Block’s counsel several times for document and data requests. Despite this, the firm failed to provide documents for six specific questions raised by CFPB.
Again in February, it was reported by NBC that US financial regulators were investigating the consumer-payments platform. This was after whistleblowers accused Cash App of conducting inadequate due diligence on customers.
This unfortunate news led to a significant drop in Block’s shares and some other operational setbacks. The firm decided it was time to prioritize its focus on the U.S., and deprioritizes global expansion, including the UK.
Kraken Custody And Strike BTC Service Launch in the UK
In line with related market entry and exit, cryptocurrency exchange Kraken has announced the extension of its Kraken Custody service to the UK. Additionally, this service that allows eligible investors to store, manage and transfer crypto assets will be going to Australia as well. Unlike Cash App, Kraken mentioned that these countries are prime destination for its Custody service.
Similarly, Jack Mallers’ Bitcoin payment app, Strike, launched in the UK. This marked a strategic move to enhance Bitcoin accessibility and adoption in one of the world’s largest economies. Consequently, UK users can now enjoy free, instant, and unlimited deposits for Bitcoin purchases directly from their bank accounts.
Cash App’s exit and the entry of Strike and Kraken Custody reflects the peculiarities of different businesses in any region.
Read More: OpenAI Launches GPT-4o Mini as Latest AI Breakthrough
