Global payment company PayPal has secured the Financial Conduct Authority (FCA) approval to provide cryptocurrency services in the United Kingdom. As per official FCA records, PayPal's registration to offer specific crypto asset activities in the U.K. has been in effect since October 31, 2023.
The FCA register outlines certain requirements and restrictions imposed on PayPal's financial services activities. These include, among other things, discontinuing the onboarding of new customers and limiting existing customers to holding and selling cryptocurrencies. Furthermore, the company is prohibited from expanding its existing range of crypto asset services. This prohibition encompasses various activities, such as cryptocurrency exchange services, involvement in initial coin offerings, staking, peer-to-peer transactions, and decentralized finance activities like lending and borrowing.
In 2023, PayPal has become the fourth company to secure crypto registration from the FCA, following Interactive Brokers, Bitstamp, and Komainu. This milestone comes on the heels of PayPal temporarily suspending its U.K. customers' ability to purchase cryptocurrencies like Bitcoin in early October. In August, the company informed Cointelegraph that it was actively working to adhere to the new regulatory framework in the United Kingdom.
The United Kingdom is increasingly establishing itself as a prominent player in the cryptocurrency landscape. A report from blockchain analytics firm Chainalysis in October 2023 revealed that the U.K. leads Central, Northern, and Western Europe in terms of raw cryptocurrency transaction volume. Additionally, a study conducted by the crypto tax platform Recap designated London as the world's most crypto-friendly city for businesses in February 2023.
PayPal scores UK crypto license after brief local Bitcoin buy halt (2023) Cointelegraph. Available at: https://cointelegraph.com/news/paypal-scores-uk-crypto-license
(Accessed: 1 November 2023).