Payments firm PayPal has achieved registration with the U.K.’s Financial Conduct Authority (FCA) as a crypto service provider. This registration allows PayPal to offer crypto-related services and products to British users. Before offering such services in the U.K., businesses must first gain approval, aligning with FCA’s regulations against money laundering. The registration comes a few months after the firm temporarily paused crypto purchases for British customers. The new rules block unregistered entities from inviting British citizens to invest in cryptocurrencies, a rule that also exists for traditional financial products. Any marketing materials must be approved by the FCA regardless of a firm’s registration status, and failing to comply with the rules comes with stiff penalties.
It’s been a bumper year for PayPal’s crypto ambitions. PayPal USD, their native, dollar-pegged stablecoin, runs on Ethereum and is purportedly backed by short-term treasuries, dollar deposits, and cash equivalents. PayPal has also announced that users can move crypto purchased on the platform to third-party wallets, and a crypto-specific checkout service for merchants.
This news marks a major step for PayPal’s ambitions in the cryptocurrency space, and the registration is a positive step forward for British customers.
You can read more about this topic here: Decrypt: PayPal Secures Crypto Registration in the UK