The payments giant Paypal has successfully achieved registration with the Financial Conduct Authority (FCA) in the United Kingdom, a fact verified by the FCA’s website on October 31. This move comes shortly after Paypal’s temporary cessation of crypto purchases within the U.K., although the company pledged to reinstate these services at the start of 2024.
FCA Greenlights Paypal to Engage in ‘Certain’ Crypto Asset-Related Activities
Paypal UK Limited is now listed on the FCA’s web registry, having received authorization to engage in “certain” crypto asset-related activities. This development is in sync with the U.K.’s recent extensive revamp of regulatory policies affecting the crypto industry. Just two days earlier, the U.K.’s Treasury introduced its detailed framework, titled “Future financial services regulatory regime for crypto assets.”
This crucial document from His Majesty’s Treasury sets forth the regulatory expectations for crypto asset issuance, disclosures, and the operations of crypto asset trading platforms. It emphasizes the imperative for any entity providing crypto services to secure FCA approval and to comply with rigorous anti-money laundering (AML) and know-your-customer (KYC) protocols.
In a separate release, the FCA and Treasury have presented the Stablecoins Update, mandating that any financial service entity interacting with crypto assets must operate within the regulatory boundaries established by the Financial Services and Markets Act of the U.K. Likely anticipating this new regulatory environment, Paypal temporarily put its crypto asset purchasing services on hold in August.
In the meantime, other firms in the crypto asset realm have opted for diverse strategies, ranging from halting the acquisition of new customers to exiting the U.K. market altogether. Consequently, due to these extensive regulatory shifts, Paypal may also find itself needing to restrict access to new customers and could potentially undergo changes in its operational framework in comparison to the previous regulatory scenario.
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