header banner
Default

The UK has approved PayPal to offer cryptocurrency-related activities


Table of Contents

    PayPal received approval from the Financial Conduct Authority (FCA) on Tuesday (Oct. 31) to offer crypto-asset activities in the United Kingdom.

    The FCA has implemented stricter rules on marketing crypto assets, causing issues for some companies, Reuters reported Wednesday (Nov. 1). Those wishing to offer crypto assets in the U.K. must demonstrate sufficient safeguards against money laundering and financing terrorism.

    PayPal initially launched its crypto buying and selling services in 2021 but temporarily paused the ability for U.K. customers to buy crypto assets starting from Oct. 1, according to the report. However, the company expects to resume these services in early 2024.

    Despite the pause, PayPal has been approved by the FCA as an authorized electronic money institution, consumer credit firm and a registered cryptoasset business, the report said.

    As a result of these approvals, PayPal’s U.K. customers will be transferred to a new entity based in Britain from PayPal Europe, reflecting the U.K.’s departure from the European Union (EU), per the report. PayPal assured its customers that it will continue to offer the same products and services in the U.K.

    PayPal announced in August that it would place a temporary halt on cryptocurrency sales for U.K. customers starting from October as it worked to comply with new regulations on crypto promotions set by the FCA.

    A PayPal spokesperson told PYMNTS on Aug. 16: “PayPal customers who currently hold crypto can keep it on our platform at no charge and are also able to sell their currency at any time. We remain deeply committed to our compliance obligations, and PayPal works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.”

    The FCA unveiled what it calls “tough rules” for crypto marketing on June 8, saying that companies marketing crypto assets to consumers in the U.K. would need to introduce a “cooling-off” period for new investors and would be banned from offering “refer a friend” bonuses.

    PayPal initially expanded its cryptocurrency trading to users in the U.K. in August 2021 by allowing them to buy and sell bitcoin, Ethereum, Litecoin and Bitcoin Cash using their PayPal account on a desktop or via the mobile app.

    See More In: banking, Binance, crypto asset, Crypto Transactions, cryptoasset, cryptocurrency, digital assets, digital first banking, FCA, Financial Conduct Authority, FinTech, money laundering, News, payment provider, PayPal, post-Brexit, PYMNTS News, registered, regulatory requirements, UK customers, United Kingdom, What's Hot

    Sources


    Article information

    Author: Brandy Snyder

    Last Updated: 1700350081

    Views: 1041

    Rating: 3.7 / 5 (84 voted)

    Reviews: 85% of readers found this page helpful

    Author information

    Name: Brandy Snyder

    Birthday: 1950-07-04

    Address: 955 Cabrera Junction, Rodneyport, MT 43709

    Phone: +4768811289286160

    Job: Cryptocurrency Analyst

    Hobby: Gardening, Arduino, Board Games, Ice Skating, Golf, Stargazing, Photography

    Introduction: My name is Brandy Snyder, I am a cherished, apt, honest, resolute, proficient, irreplaceable, receptive person who loves writing and wants to share my knowledge and understanding with you.