PayPal, a leading payment service provider, has recently obtained a cryptoasset registration from the UK’s Financial Conduct Authority (FCA). This development, announced on October 31, enables PayPal to extend its crypto services to the UK, amidst the country’s increasing regulatory scrutiny over digital assets.
This approval follows a temporary halt of crypto purchases by PayPal UK, a move aimed at complying with the FCA’s newly implemented rules for marketing cryptoassets. PayPal reassured its users that crypto sales would resume in early 2024 and that their assets remain secure.
FCA’s Updated Regulations
The FCA has granted approval to four crypto service providers in 2023, including PayPal, Komainu, Bitstamp, and Interactive Brokers. Since August 2020, a total of 43 cryptoasset firms have registered with the FCA.
The UK regulator has revised its guidelines, introducing additional requirements for crypto entities before they can facilitate crypto purchases for their clients. These changes also extend the regulator’s oversight to crypto marketing and promotions. This was prompted by research indicating a significant rise in crypto ownership.
PayPal continues to work closely with regulators to ensure compliance with all applicable rules and regulations in the crypto market. The company recently launched its PayPal USD (PYUSD) stablecoin and inaugurated a dedicated cryptocurrency hub on its platform.