PayPal Granted License to Operate as Crypto Asset Business in the UK
PayPal has obtained a license from the Financial Conduct Authority (FCA) in the United Kingdom, allowing it to operate as a crypto asset business. This registration is required under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs), which govern crypto asset exchange providers, peer-to-peer providers, issuers of new crypto assets, and custodian wallet providers.
The FCA serves as the supervisor for anti-money laundering and counter-terrorist financing (AML/CTF) activities in the UK’s crypto asset industry. According to the FCA website, businesses intending to provide in-scope services within the UK must be registered with the FCA before commencing operations.
PayPal’s Crypto Offerings in the UK
In 2021, PayPal launched its cryptocurrency services in the UK, allowing customers to buy, sell, and hold digital assets through its platform. However, the company recently suspended crypto buying for UK customers as it works towards meeting regulatory requirements.
PayPal stated that this pause is temporary and necessary to update their system in compliance with new UK regulations. Customers can still hold their existing crypto holdings or choose to sell them during this period.
Hot Take: PayPal Expands Crypto Services with UK License
Global payments giant PayPal has received regulatory approval from the FCA to operate as a crypto asset business in the United Kingdom. This license allows PayPal to continue offering its cryptocurrency services to UK customers after temporarily suspending crypto buying due to regulatory compliance requirements.
This development demonstrates PayPal’s commitment to expanding its presence in the crypto market and complying with regulatory frameworks. It also highlights the growing acceptance of cryptocurrencies by traditional financial institutions and their recognition as a legitimate asset class.
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