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PayPal UK Unit Registers as Crypto Service Provider
The Financial Conduct Authority's approval means the payments firm can offer certain crypto services and advertise to local clients.
Updated Nov 1, 2023, 4:58 p.m. Published Nov 1, 2023, 1:33 p.m.
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Payments giant PayPal has successfully registered with the U.K. Financial Conduct Authority as a crypto service provider, the regulator's website shows.
Paypal UK Limited, which was entered into the registry on Tuesday, is permitted to engage in "certain cryptoasset activities." Companies offering crypto services in the U.K. must be approved for registration and comply with the FCA's anti-money laundering rules.
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Landing on the register, which opened in 2020, means PayPal can also approve its own crypto-related communications under the recently imposed marketing regime. In August, PayPal announced that it was temporarily pausing crypto purchases in the country to comply with the regime. Landing on the U.K. crypto register does not affect the pause PayPal announced in August, a spokesperson told CoinDesk.
"The Financial Conduct Authority has approved PayPal UK Ltd as an authorised electronic money institution and consumer credit firm, and registration as a crypto asset business, enabling the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on 1 November 2023," the spokesperson said.
Paypal UK will face some restrictions. The platform will not be able to expand its current offering in crypto into things like staking, exchange crypto assets, participate in initial coin offerings and decentralized finance activities like lending without the FCA's permission, the regulator's website said.
Update (Nov. 1 16:55 UTC): Adds comments from PayPal to paragraph 3 and 4 plus information on restrictions from the FCA to the last paragraph.
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