PayPal, the prominent payments platform, has made strides in its UK operations, securing registration as a crypto service provider with the Financial Conduct Authority (FCA), as confirmed by the regulator’s official website.
PayPal UK Limited, having been added to the registry this Tuesday, now has the clearance to undertake “specified cryptoasset activities.” In the UK, any enterprise looking to provide crypto services must first secure FCA’s registration and strictly adhere to its anti-money laundering protocols.
Joining this registry, which was initiated in 2020, also empowers PayPal to sanction its crypto-centric communications, aligning with the newly established marketing regulations. It’s worth noting that PayPal had, in August, declared a temporary halt on crypto purchases in the UK to comply with these marketing rules. This new development in the FCA registry doesn’t impact the aforementioned pause by PayPal.
Highlighting the significance of this registration, a spokesperson remarked:
“As of 1 November 2023, the Financial Conduct Authority has granted PayPal UK Ltd the status of an authorized electronic money institution and a consumer credit enterprise, in addition to recognizing it as a crypto asset business. This facilitates the migration of PayPal’s UK client accounts from PayPal Europe to this fresh UK entity.”
However, the road isn’t entirely smooth for PayPal UK. The FCA has imposed certain limitations on its operations. The payments platform won’t be permitted to broaden its current crypto service palette to encompass activities like staking, crypto asset exchanges, engaging in initial coin offerings, or delving into decentralized finance ventures such as lending unless it garners explicit approval from the FCA.