PayPal Receives FCA Approval for Cryptoasset Operations in the UK Amid Regulatory Shifts
In a strategic move to establish a post-Brexit presence in Britain, global payment giant PayPal has successfully registered to offer cryptoasset activities in the United Kingdom, as confirmed by the Financial Conduct Authority (FCA) on its official website.
As the crypto market in Britain eagerly anticipates the formulation of its inaugural regulatory framework, companies seeking to provide cryptoassets are now required to demonstrate to the FCA that they have robust measures in place to prevent the misuse of these digital assets for money laundering or terrorism financing.
Furthermore, the FCA has recently implemented more stringent regulations on the marketing of cryptoassets, a development that has posed challenges for competitors like Binance.
PayPal, a company that ventured into cryptocurrency trading and purchasing in 2021, previously announced in August that it would temporarily suspend the ability of its UK customers to acquire cryptoassets, starting from October 1, with plans to resume these services in early 2024.
In a statement issued on Wednesday, PayPal revealed that it had received approval from the FCA to operate as an authorized electronic money institution, a consumer credit firm, and as a registered cryptoasset business.
However, it was clarified that the pause in crypto services for UK customers would persist, in line with the previous announcement.
These regulatory endorsements signify a significant change in PayPal's operational structure.
Starting from November 1, the company's UK customer base will be transitioned to a new entity located within the United Kingdom, in contrast to its previous service provided through PayPal Europe.
This transition reflects the impact of Britain's exit from the European Union.
PayPal assured its customers, stating, "PayPal continues to offer our customers the same products and services in the United Kingdom."
Huw Jones / Reuters