PayPal has secured registration with the Financial Conduct Authority (FCA) to offer cryptocurrency services in the UK. As the UK’s crypto market awaits its inaugural set of regulations, companies seeking to provide crypto assets must demonstrate to the FCA that they have adequate anti-money laundering and counter-terrorism financing safeguards in place.
The FCA has also imposed stricter regulations on the marketing of crypto assets, which have posed challenges for competitors like Binance.
In 2021, PayPal initially introduced cryptocurrency trading, and in August 2023, it announced the temporary suspension of the option for UK customers to purchase crypto assets starting on October 1, 2023. The company plans to resume this service in early 2024.
PayPal highlighted its status as an authorized electronic money institution, a consumer credit firm, and its registration as a crypto asset business with the FCA. The temporary pause in PayPal’s UK crypto services will continue as previously announced.
These regulatory approvals signify that, beginning on November 1, 2023, PayPal’s UK customers will be transferred to a new entity based in the UK, replacing PayPal Europe, which had previously served UK customers. This change reflects Britain’s exit from the European Union.