Payments giant PayPal has become the latest company to receive a cryptoasset registration from the Financial Conduct Authority (FCA) in the UK. This registration allows PayPal UK Limited to offer crypto services within the country amidst tightening regulations in the digital asset sector.
Registration Approval and Compliance
The FCA issued the registration to PayPal UK Limited on October 31, as stated on the FCA’s crypto register. This approval comes after PayPal temporarily suspended crypto purchases for UK customers, ensuring compliance with the FCA’s new rules for marketing cryptoassets.
“The move would help PayPal to comply with the recent new rules for marketing cryptoassets enacted by the FCA. PayPal confirmed at the time that crypto sales will be re-enabled in early 2024 and assured that user assets are safe.” – PayPal
PayPal has been working closely with regulators to adhere to applicable rules and regulations in the ever-evolving crypto market.
UK’s Regulatory Environment
The UK’s regulatory environment for crypto services has witnessed revisions, imposing additional criteria and prerequisites for crypto entities facilitating crypto purchases for their clients. Moreover, these revisions have brought crypto marketing and promotions under the remit of the regulator.
The FCA’s research revealed a significant increase in crypto ownership, prompting the introduction of stricter guidelines.
Other Approved Crypto Service Providers
PayPal is among the four crypto service providers approved by the UK’s regulator in 2023. The other approved providers include Komainu, Bitstamp, and Interactive Brokers. Since August 2020, a total of 43 cryptoasset firms have registered with the FCA.
PayPal’s Expanding Presence in the Crypto Market
In addition to securing the FCA’s cryptoasset registration, PayPal has launched the PayPal USD (PYUSD) stablecoin and introduced a dedicated cryptocurrency hub on its platform. These initiatives demonstrate PayPal’s commitment to embracing cryptocurrencies and catering to the growing demand in the market.
