PayPal, the online payment giant, is making a major comeback to the world of cryptocurrencies in the UK. After a temporary halt to local bitcoin purchases in early October, PayPal has finally received approval from the Financial Conduct Authority (FCA) to offer crypto services on UK territory.
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PayPal obtains license to restart crypto activities in the UK
After a temporary interruption of bitcoin and cryptocurrency purchase services, for its users in the UK, PayPal resumes operations after obtaining regulatory approval.
On October 31, 2023 Financial Conduct Authority (FCA) revealed on its official website that it had granted to PayPal authorization to conduct certain crypto-related operations in the country.
Thus, Paypal UK Limited can now offer cryptocurrency-related services and products to UK residents.
However, despite this authorization, the FCA requires PayPal some restrictions on the financial services it can offer. These constraints include suspending the registration of new customers and prohibiting existing customers from owning and selling cryptocurrency-related assets.
In addition, PayPal is not allowed to expand its current offering of digital assets, including peer-to-peer exchange services, initial token offerings, staking, and decentralized financial activities.
PayPal, fourth company to obtain FCA registration in 2023
Any company wanting to offer cryptocurrency-related services in the UK must first receive authorization, in line with the FCA’s anti-money laundering guidelines.
Following this approval, PayPal becomes the fourth company to obtain crypto registration from the FCA, in 2023, thus joining Interactive Brokers, Bitstamp and Komainu.
This authorization granted to PayPal comes at a time when the UK is strengthening its position as a major player in the world of cryptocurrencies. According to a Chainalysis report published in October 2023, the UK stands out as the leader in crypto transaction volume among Central, Northern and Western European countries.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.