Global payment giant PayPal has received approval from the Financial Conduct Authority (FCA) to offer crypto services in the United Kingdom.
Information From Official Data
According to official FCA data, PayPal has been registered to offer “certain crypto asset activities” in the U.K. since Oct. 31, 2023.
According to the register, PayPal has requirements or restrictions placed on the financial services activities that it can perform.
“This includes, but is not limited to, ceasing onboarding new customers and restricting existing customers to hold and sell functionality,” the information on the FCA register reads.
PayPal’s Restrictions In U.K.
The restrictions imposed on PayPal’s crypto services in the U.K. indicate that they are currently not allowed to onboard new customers and can only provide limited functionality for existing customers, specifically allowing them to hold and sell crypto assets.
These measures are likely in place to ensure compliance with regulatory guidelines and protect consumers in the rapidly evolving crypto market.
“The firm cannot expand its current offering in crypto assets,” the register notes, adding that it’s “including, but not limited” to crypto exchange services, participation in initial coin offerings, staking, peer-to-peer exchange, and decentralized finance activities such as lending and borrowing.
U.K.’s Tremendous Crypto Growth
The United Kingdom has been noticeably emerging as a major cryptocurrency economy.
According to an October 2023 report by blockchain analytics firm Chainalysis, the U.K. is the biggest crypto country in terms of raw transaction volume in Central, Northern, and Western Europe. According to a study by the crypto tax platform Recap, London was the world’s most crypto-ready city for business in February 2023.
The growth of the cryptocurrency industry in the United Kingdom can be attributed to various factors, including favorable regulatory frameworks and increasing adoption by businesses and individuals.
Additionally, the presence of a thriving fintech ecosystem in London has further propelled the city’s position as a global hub for cryptocurrency-related activities.
PayPal reportedly became the fourth firm to receive the FCA’s crypto registration in 2023 after Interactive Brokers, Bitstamp, and Komainu. The license acquisition comes shortly after PayPal briefly paused the ability for its U.K. customers to buy cryptocurrencies like Bitcoin in early October. The firm declared in August that it was working to comply with new regulations in the country.
