PayPal (NASDAQ:PYPL) has reportedly been registered to provide crypto-asset services in the UK. This, according to the UK Financial Conduct Authority’s (FCA) update posted on its website. The news comes as the international payments firm builds a post-Brexit base in the country.
Although the cryptocurrency market in the UK currently expects its initial set of regulatory guidelines, firms that intend to provide digital assets and crypto-focused services need to show the FCA that they do have adequate safeguards against them being misused for laundering funds or financing terrorist activities.
The UK regulatory authority has also introduced stricter measures when it comes to marketing or promoting crypto-related services, which have affected industry participants such as Binance.
PayPal, which initially introduced cryptocurrency purchasing and selling back in 2021, stated in August of this year that it was temporarily suspending the option for UK clients to acquire digital currencies, starting from October 1, 2023, and that it intended to resume services early next year.
PayPal also mentioned this past Wednesday that the FCA has approved the firm as an authorized electronic money institution and consumer credit company, alonside its registration as a crypto-asset service provider. However, the current pause in UK crypto services will continue as previously reported.
The approvals essentially mean that starting from November 1, 2023, PayPal’s UK clients will be transferred to another business entity based in the United Kingdom from PayPal Europe, which was catering to UK clients. This move is indicative of the nation’s departure from the EU.
The firm added that they “continue to offer their customers the same products and services in the United Kingdom.”
It’s worth noting that PayPal’s services can be challenging to access in certain jurisdictions. When it comes to buying, selling, trading, or investing in virtual currencies like Bitcoin (BTC) and Ethereum (ETH), the consumers are better off working with platforms that are more decentralized. Industry professionals also recommend using non-custodial wallets to securely store and manage crypto holdings, because only the owner of those assets has full control of them – which is one of the main value propositions of crypto-assets.