The enormous payment platform PayPal has successfully registered as a crypto service provider with the U.K. Financial Conduct Authority, according to the regulator’s website.
After being added to the registration on Tuesday, Paypal UK Limited is permitted to do “certain cryptoasset activities.” Companies that provide cryptocurrency services in the UK must be registered and adhere to FCA anti-money laundering regulations.
PayPal, which debuted in 2020, is also permitted to approve its communications about cryptocurrency under the newly enforced marketing regulations. PayPal declared in August that it would be temporarily stopping cryptocurrency purchases in the nation to abide by the regulations.
A spokesperson for PayPal said that landing on the U.K. cryptocurrency register does not impact the halt it announced in August.
He added, “The Financial Conduct Authority has approved PayPal UK Ltd as an authorised electronic money institution and consumer credit firm, and registration as a crypto asset business, enabling the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on 1 November 2023”
Paypal UK will have to abide by certain rules. The platform will require authorization from the FCA to extend its present cryptocurrency offerings into areas such as staking, exchanging cryptocurrency assets, taking part in initial coin offerings, and engaging in decentralized finance activities like lending.
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