LONDON (Reuters) – PayPal has received approval from the Financial Conduct Authority (FCA) to offer cryptoasset activities in the United Kingdom. The move comes as the global payments giant establishes a post-Brexit presence in Britain.
As the crypto market in Britain awaits regulatory guidelines, companies seeking to provide cryptoassets must demonstrate to the FCA that they have robust measures in place to prevent money laundering and the financing of terrorism.
In addition, the FCA has introduced stricter regulations regarding the marketing of cryptoassets, causing difficulties for competitors such as Binance.
In August, PayPal announced that it was temporarily suspending its UK customers’ ability to purchase cryptoassets until early 2024. Although the pause in UK crypto services will continue as planned, PayPal has now confirmed that the FCA has authorized the company as an electronic money institution, a consumer credit firm, and a cryptoasset business.
Effective November 1, PayPal’s UK customers will be transferred to a new entity based in Britain, replacing PayPal Europe, which has been serving UK customers. This transition reflects the UK’s departure from the European Union.
PayPal has assured its customers that it will continue to offer the same range of products and services in the United Kingdom.
(Reporting by Huw Jones; Editing by Jonathan Oatis and Alexander Smith)
