PayPal UK Limited has received approval from the UK Financial Conduct Authority (FCA) as a crypto service provider, allowing the company to offer specific cryptocurrency services and advertise them to local clients.
The regulatory clearance signifies that PayPal can engage in “certain crypto asset activities” and communicate about its crypto-related offerings in compliance with the FCA’s marketing regulations, including anti-money laundering rules.
PayPal was entered into the FCA’s registry on Tuesday, 31st October.
This development follows an earlier announcement by PayPal in August, where it temporarily paused crypto purchases in the UK to adhere to the FCA’s regulations.
However, the new approval does not impact the previous pause in crypto services announced in August. PayPal UK will still have certain restrictions, preventing it from expanding into activities like staking, exchanging crypto assets, participating in initial coin offerings, or engaging in decentralised finance activities without explicit permission from the FCA.
PayPal is hopeful to resume provision of crypto purchasing services in 2024.
Essentially, PayPal UK’s registration with the FCA as a crypto service provider allows it to continue offering specific cryptocurrency-related services in the UK, but it comes with regulatory limitations on certain activities to ensure compliance with the FCA’s rules and regulations.