In a development that is likely to be lauded by crypto enthusiasts, Californian payments giant PayPal, has secured regulatory approval from the Financial Conduct Authority (FCA) to offer cryptocurrency-related services in the United Kingdom. This development comes amidst a changing regulatory landscape for cryptocurrencies and is a significant step for PayPal in expanding its cryptocurrency services in the UK.
It seems that the PayPal UK Limited has received its registration on October 31, as indicated by the FCA’s crypto register. This development makes PayPal the fourth firm to obtain the FCA’s crypto registration this year, following in the footsteps of Interactive Brokers, Bitstamp, and Komainu. This registration grants PayPal the authorization to provide certain cryptocurrency activities in the UK. It also comes two years after PayPal had first ventured into the cryptocurrency sector by supporting the buying and selling of cryptocurrencies on its platform.
“This firm is registered for certain cryptoasset activities. You can find more information about why this firm needs to be registered on the FCA website,” reads the FCA page on PayPal UK Limited. “This includes, but is not limited to, ceasing on-boarding new customers and restricting existing customers to hold and sell functionality,” the FCA register reads, adding that PayPal “cannot expand its current offering in crypto assets,” and that it is “including, but not limited” to crypto exchange services, participation in initial coin offerings, and decentralized finance activities such as lending and borrowing.
This development comes some time after the digital payments major announced a temporary pause on crypto purchases in the UK until 2024, citing the need to comply with the stricter regulations imposed by the FCA. This registration now allows PayPal to continue offering cryptocurrency services while aligning with the existing regulatory framework. After all, if PayPal is non-compliant with the rules, then it may be slapped with “an unlimited fine and/or up to 2 years imprisonment.”
“The FCA has approved PayPal UK Limited as an authorised electronic money institution and consumer credit firm, and registration as a cryptoasset business, enabling the transfer of PayPal’s UK customer accounts to this new UK entity from PayPal Europe on 1 November 2023,” a spokesperson for PayPal UK commented on the matter. “The change follows the UK’s exit from the European Union. Until now, PayPal Europe has provided services to UK customers. PayPal continues to offer our customers the same products and services in the UK,” the spokesperson added. Starting today, November 1, PayPal users in the UK will be transferred to the entity based in Britain from PayPal Europe.
With this regulatory milestone achieved, PayPal is actively seeking candidates for ten roles in the UK in order to provide cryptocurrency services to its customers in the UK. Among the roles being recruited for are a crypto money laundering reporting officer and the head of financial crime. With PayPal obtaining regulatory approval, it can further build trust among its customers. Users may feel more secure engaging in cryptocurrency activities on the platform, especially if PayPal remains compliant with the existing regulations. It even adds further legitimacy to the cryptocurrency market in the UK, and its impact on the global crypto sector is yet to be seen.
