UK’s Financial Conduct Authority (FCA) has granted approval to PayPal to offer cryptoasset activities in the UK, marking a significant step for the global payments giant in establishing a post-Brexit base in Britain.
As the UK’s crypto market awaits its inaugural set of regulations, companies seeking to provide cryptoassets must demonstrate to the FCA that they have robust safeguards in place to prevent money laundering and the financing of terrorism.
The FCA has also implemented stricter measures on the marketing of cryptoassets, impacting competitors like Binance.
PayPal, which initially introduced cryptocurrency buying and selling in 2021, announced in August that it would temporarily halt the ability of UK customers to purchase cryptoassets from October 1. The company anticipated resuming these services in early 2024.
While confirming the FCA’s approval as an authorized electronic money institution and consumer credit firm, along with registration as a cryptoasset business, PayPal stated that the pause in UK crypto services would persist as previously announced.
Effective November 1, PayPal’s UK customers will be transitioned to a new entity based in Britain, departing from the previous service through PayPal Europe. This change reflects the UK’s separation from the European Union.
PayPal assured its customers that the company would continue to offer the same products and services in the United Kingdom despite the operational adjustments.
