- PayPal secured registration as a cryptocurrency service provider with the U.K. Financial Conduct Authority.
- Being listed on the U.K. crypto register empowers PayPal to approve its crypto-related communications.
- PayPal’s U.K. operations face restrictions in expanding crypto services without FCA permission.
PayPal, a major player in the payments industry, has achieved registration as a cryptocurrency service provider with the U.K. Financial Conduct Authority, according to information available on the regulator’s website. Paypal UK Limited, officially registered on a Tuesday, has been granted permission to participate in “certain cryptoasset activities.” In the United Kingdom, businesses providing crypto services must undergo registration approval and adhere to the Financial Conduct Authority’s anti-money laundering regulations.
Being listed on the register, which was established in 2020, enables PayPal to autonomously authorize its crypto-related communications within the recently enforced marketing framework. In August, PayPal declared a temporary suspension of crypto transactions in the country to adhere to this regulatory regime. However, it’s important to note that being listed on the U.K. crypto register does not impact the pause announced by PayPal in August, as confirmed by a company spokesperson.
“”The Financial Conduct Authority has approved PayPal UK Ltd as an authorised electronic money institution and consumer credit firm, and registration as a crypto asset business, enabling the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on 1 November 2023.”
Paypal
Moreover, PayPal UK will encounter certain limitations. According to the regulator’s website, the platform cannot broaden its existing crypto services to include activities such as staking, crypto asset exchange, involvement in initial coin offerings, and decentralized finance lending without obtaining permission from the Financial Conduct Authority (FCA).
This is not PayPal’s crypto debut. Back in August, PayPal launched a new crypto tied to the value of the U.S. dollar, as reported by The Washington Post. This strategic initiative is intended to strengthen its presence in the digital asset ecosystem. However, in its quarterly earnings report, PayPal revealed that it had received a subpoena from the U.S. SEC Division of Enforcement concerning its PayPal USD stablecoin, without specifying the details of the request. The company stated its cooperation with the SEC.
