In a recent development, PayPal has been registered by the Financial Conduct Authority (FCA) to offer crypto-asset activities in Great Britain. This move comes as PayPal establishes a post-Brexit base in the UK, reflecting its commitment to serving the UK market.
According to a Reuters report, the UK crypto market is awaiting its first set of regulations; Firms intending to offer cryptoassets must demonstrate to the FCA that they have robust safeguards in place to prevent money laundering and terrorist financing.
The FCA has also implemented stricter measures on cryptocurrency trading, leading to outages on platforms like Binance.
FCA approves PayPal as UK registered crypto company
PayPal, a global payments giant that introduced cryptocurrency buying and selling services in 2021, announced the temporary suspension of UK customers’ ability to purchase crypto assets starting October 1.
The company expects to resume these services in early 2024. Despite the pause, PayPal has received approval from the FCA as an authorized electronic money institution, consumer credit company and registered crypto asset company.
According to the report, from November 1, PayPal customers in the UK will switch to a new British-based entity, marking the company’s adaptation to the UK’s post-Brexit landscape.
PayPal has assured its customers that they will continue to receive the same products and services in the UK.
UK Government Regulatory Framework
Previous reports have indicated that PayPal’s decision to halt cryptocurrency purchases in the UK was influenced by the FCA’s introduction of stricter marketing rules for crypto assets.
However, as Bitcoinist reported, the UK government’s recent update to the regulatory framework for crypto assets emphasizes risk management while encouraging innovation, indicating a forward-thinking approach.
The government recognizes the transformative potential of digital assets and intends to improve the existing regulatory framework under the Financial Services and Markets Act 2000 (FSMA) to effectively balance benefits and risks.
In short, PayPal’s approval to provide crypto services in the UK signifies its commitment to the UK market and its compliance with regulatory requirements.
The current trading level above $1.25 trillion has significant significance for the cryptocurrency market. It has not been breached since November 2022, before the FTX collapse.
To achieve further gains, the market must go through an accumulation phase and establish this level as strong support, paving the way to retest higher highs.