PayPal has received approval from the Financial Conduct Authority to offer crypto services in the UK, as the regulatory environment continues to tighten on the sector.
PayPal UK Limited secured registration on 31 October, according to an update on the FCA’s crypto register confirmed to Financial News by the regulator.
PayPal became the fourth firm to receive the FCA’s crypto registration this year after Interactive Brokers, Bitstamp, and Komainu.
READ Nomura-backed crypto firm Komainu scores FCA approval
“The FCA has approved PayPal UK Limited as an authorised electronic money institution and consumer credit firm, and registration as a cryptoasset business, enabling the transfer of PayPal’s UK customer accounts to this new UK entity from PayPal Europe on 1 November 2023,” a spokesperson for the firm told FN.
“The change follows the UK’s exit from the European Union. Until now, PayPal Europe has provided services to UK customers. PayPal continues to offer our customers the same products and services in the UK,” the spokesperson added.
PayPal’s crypto registration comes as the UK government plans to introduce stricter measures for crypto providers to regulate them under the existing Financial Services and Markets Act framework.
Crypto exchanges could have to meet new admission and disclosure requirements when they decide to list digital assets, according to a Treasury announcement on 30 October.
READ UK to regulate crypto like traditional assets in landmark move
Between January 2020 and 6 October 2023, the FCA received 326 crypto registration applications. Only 43 secured registration — a 14% approval rate.
PayPal announced in August that it was pausing crypto purchases in the UK until 2024, citing stricter regulations by the FCA.
“The new registration doesn’t effect the pause,” the spokesperson confirmed. The exact date the pause will lift has not yet been confirmed.
PayPal is expanding its team in the UK and is seeking candidates for 10 roles, including a crypto money laundering reporting officer and the head of financial crime, according to its website.
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To contact the author of this story with feedback or news, email Bilal Jafar
