Payment giant PayPal has successfully registered as a cryptocurrency service provider with the UK Financial Conduct Authority, the regulator's website revealed.
Paypal UK Limited, which was registered on Tuesday, is permitted to engage in “certain crypto asset activities”. Companies offering cryptocurrency services in the UK must be approved for registration and comply with the FCA's anti-money laundering regulations.
The opening of registration in 2020 means that PayPal can also approve its own crypto-related communications under the recently imposed marketing regime. In August, PayPal announced that it would temporarily suspend the purchase of cryptocurrencies in the country to comply with regulations. A spokesperson told CoinDesk that the UK crypto registry registration is not affected by the suspension PayPal announced in August.
“The Financial Conduct Authority has approved PayPal UK Ltd as an Authorized Electronic Money Institution and Consumer Credit Company and has approved it to register as a crypto asset business, and has approved PayPal UK Ltd as an Authorized Electronic Money Institution and Consumer Credit Company to register as a Crypto Asset Business, and will open PayPal UK customer accounts to PayPal Europe Ltd from 1 November 2023. to this new UK entity,” the spokesperson said.
Some restrictions apply to Paypal UK. According to the regulator's website, the platform cannot extend its current crypto services to include staking, exchange of crypto assets, decentralized finance activities such as initial coin offerings or loans without permission from the FCA. That's what it means.
Updated (November 1, 16:55 UTC): Add comments from PayPal to paragraphs 3 and 4 and information about restrictions from FCA to the last paragraph.
