has received approval from the Financial Conduct Authority (FCA) to provide
cryptocurrency services in the United Kingdom. According to official FCA data,
PayPal has been registered to offer “certain crypto asset activities”
in the UK since October 31, 2023.
FCA’s Restrictions on PayPal’s Crypto Activities
FCA granted PayPal the ability to offer cryptocurrency services. However,
certain requirements and restrictions have been placed on its financial
activities. These limitations include stopping the onboarding of new customers
and restricting existing customers to holding and selling cryptocurrency assets
is not permitted to expand its current offerings in the crypto space. This
restriction encompasses various crypto-related activities. The restriction
includes crypto exchange services, participation in initial coin offerings,
staking, peer-to-peer exchange, and decentralized finance activities such as
lending and borrowing.
joins the ranks of other firms like Interactive Brokers, Bitstamp, and Komainu,
making it the fourth company to receive the FCA’s crypto registration in 2023.
This licensing development follows PayPal’s brief suspension of cryptocurrency
purchases for its UK customers in early October. The company stated in August
that it was working to comply with new regulatory requirements in the country.
United Kingdom has been increasingly establishing itself as a significant
cryptocurrency market. According to an October 2023 report by blockchain
analytics firm Chainalysis, the UK leads Central, Northern, and Western Europe
in terms of raw cryptocurrency transaction volume.
a study by the crypto tax platform Recap identified London as the world’s most
crypto-ready city for business in February 2023. These trends highlight the
growing significance of the UK in the global cryptocurrency landscape.
This article was written by Tareq Sikder at www.financemagnates.com.