PayPal has secured regulatory approval from the Financial Conduct Authority (FCA) to offer cryptocurrency services in the United Kingdom. This announcement comes as PayPal strengthens its presence in Britain post-Brexit. While the crypto market in the UK is still awaiting its initial set of rules and regulations, companies entering the space must demonstrate robust safeguards against money laundering and the financing of terrorism to gain approval from the FCA.
The FCA has also introduced stricter marketing regulations for cryptocurrency, impacting competitors like Binance. PayPal, a global payments giant, initiated crypto buying and selling services in 2021. However, the company temporarily halted the ability for UK customers to purchase cryptocurrency starting from October 1, with plans to resume these services in early 2024.
With the FCA’s recent approvals, PayPal has gained recognition as an authorized electronic money institution and consumer credit firm, in addition to its registration as a cryptocurrency business. Despite the temporary pause in UK crypto services, this move will see PayPal’s UK customers transferred to a new entity based in Britain instead of PayPal Europe, aligning with the UK’s departure from the European Union.
PayPal assures its UK customers that they will continue to access the same products and services in the United Kingdom, ensuring business continuity and a seamless transition.
