PayPal Secures Crypto Green Light in the UK as It Establishes Post-Brexit Hub
PayPal Receives Approval from the FCA to Operate Cryptoasset Activities in the UK, Marking a Key Move in the Company's Post-Brexit Strategy
The Financial Conduct Authority (FCA) has officially granted PayPal the registration to provide cryptoasset services in the United Kingdom, as part of the global payments giant's ongoing efforts to establish a post-Brexit presence in the country.
In the absence of a comprehensive regulatory framework for the crypto market in the UK, companies seeking to offer cryptoassets are required to demonstrate to the FCA that they have robust safeguards in place to prevent these assets from being utilized for money laundering or the financing of terrorism, according to a Reuters report,
PayPal, a major player in the global payments industry, first ventured into cryptocurrency trading and transactions in 2021. Earlier in August, the company announced a temporary suspension of its UK customers' ability to purchase cryptoassets starting from October 1, with plans to resume this service in early 2024.
On Wednesday, PayPal disclosed that the FCA has granted the company authorization as an electronic money institution and consumer credit firm. Additionally, PayPal has been officially registered as a cryptoasset business. However, the pause in crypto services for UK customers will continue as previously communicated.
As of November 1, 2023, PayPal's UK customers will be transferred to a new entity based in Britain, marking a significant shift from their previous association with PayPal Europe. This transition underscores the impact of the UK's separation from the European Union.
PayPal emphasized that it will continue to offer its UK customers the same range of products and services that they have come to rely on. This moves signals PayPal's commitment to ensuring a smooth and uninterrupted service experience for its UK clientele.
