- Austrian crypto exchange cites poor LSE liquidity despite UK regulatory reforms
- Trump administration’s crypto support drives exchanges toward US listings
- UK faces 30-year low in IPO activity as companies choose Frankfurt or New York
Bitpanda, the Austrian cryptocurrency exchange backed by billionaire investors Peter Thiel and Alan Howard, has excluded London from its potential listing destinations despite the UK’s recent regulatory advances in digital assets. Co-founder Eric Demuth cited poor liquidity on the London Stock Exchange as the primary factor driving the decision to consider Frankfurt or New York instead.
The rejection comes as the UK has implemented comprehensive cryptocurrency regulations throughout 2025. This includes the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025. This legislation brings crypto exchanges under traditional financial services oversight. They now also require compliance with transparency, consumer protection, and operational resilience standards.
LSE Liquidity Crisis Overshadows Regulatory Progress
Demuth pointed to British fintech Wise’s decision to switch its primary listing from London to New York as evidence of broader market challenges. The move was designed to bring in more investors and improve share liquidity.
UK IPO activity has plunged to a 30-year low in the first half of 2025 and raised concerns about London’s status as a global capital hub. Amid political and regulatory reforms, various attempts were made to revive UK capital markets, but companies continued to choose alternative venues for public offerings.
The Austrian exchange joins other crypto companies selecting US listings over London despite the UK’s regulatory clarity efforts. Figure Technology Solutions filed for a New York listing earlier this month, while Gemini and BitGo have also chosen US markets for their public offerings.
UK Regulatory Achievements Insufficient for Market Attraction
HM Treasury’s comprehensive cryptoassets framework is one of the most extensive regulatory overhauls in UK financial services in over a decade. The legislation establishes clear operating standards for crypto exchanges and also provides consumer protections comparable to traditional finance.
However, regulatory clarity alone has proven insufficient to overcome liquidity challenges that affect public company valuations and investor interest. The UK’s structural market issues appear to outweigh regulatory advantages when companies evaluate listing destinations.
The recent move by the exchanges shows the broader trends where regulatory frameworks cannot substitute for strong capital market infrastructure and investor participation. The company remains open to future UK consideration if market conditions improve.
Over recent years, the UK has faced criticism for lacking a clear crypto framework and lagging behind the EU’s MiCA initiative. The fragmented oversight and regulatory delays have hindered the UK’s crypto hub ambitions. However, in 2025, the government introduced a two-phase regulatory framework that covers stablecoins, custody, lending, etc. Despite these moves, many exchanges remain hesitant to set up in London, citing higher compliance costs, a cautious stance, lengthy approvals, etc.
Related: https://coinedition.com/south-korea-suspends-crypto-lending-exchanges/
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