The Financial Conduct Authority said on its website that PayPal has registered to offer cryptoasset operations in the United Kingdom.
Companies that wish to offer cryptoassets must demonstrate to the FCA that they have adequate measures in place to prevent them from being exploited for money laundering or terrorism financing, even as the British crypto market waits for its first set of regulations.
Additionally, the regulator has tightened restrictions on the marketing of cryptoassets, which has hindered competitors like Binance.
PayPal, which began offering cryptocurrency buying and selling in 2021, announced in August that it would be temporarily stopping UK customers’ ability to purchase cryptoassets as of October 1 and that it planned to resume in early 2024.
PayPal stated on Wednesday that the FCA had confirmed the company’s registration as a cryptoasset business, as well as its status as an authorised electronic money institution and consumer credit firm. However, the company maintained the previously announced halt to its UK crypto services.
Following Britain’s exit from the European Union, the approvals mean that, as of November 1, PayPal’s UK customers would be moved from PayPal Europe, which had hitherto catered to UK customers, to a new company headquartered in Britain.
