Payment giant PayPal has recently obtained registration for providing cryptoasset services from the UK’s Financial Conduct Authority (FCA). This registration, as indicated in the FCA’s crypto register update, was granted to PayPal UK Limited on October 31. This enables PayPal to offer crypto services in the UK, aligning with the tightening regulatory environment for the digital asset sector in the country.
The approval for registration follows PayPal UK’s temporary suspension of crypto purchases for its UK customers. This move was made to ensure compliance with the FCA’s newly enacted rules governing the marketing of cryptoassets. PayPal confirmed that crypto sales would be reinstated in early 2024 and emphasized the security of user assets.
In 2023, the FCA has approved registration for four crypto service providers, including PayPal, Komainu, Bitstamp, and Interactive Brokers. In total, since August 2020, 43 cryptoasset firms have registered with the FCA.
FCA’s Revised Guidelines
The UK’s regulatory authority revised its guidelines, introducing additional criteria and prerequisites for crypto entities to meet before enabling crypto purchases for their customers. These regulations also extend to cover marketing and promotional activities related to cryptocurrencies, reflecting the growing interest and ownership of crypto assets as indicated by the regulator’s research.
PayPal has been actively collaborating with regulators to ensure compliance with the evolving rules and regulations in the cryptocurrency market. The company has recently introduced the PayPal USD (PYUSD) stablecoin and inaugurated a dedicated cryptocurrency hub on its platform, demonstrating its commitment to the crypto space.