PayPal obtains a crypto licence in the UK from FCA
The licence acquisition comes after PayPal temporarily halted Bitcoin purchases in the UK in October 2023 due to strict FCA regulations
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The US-based financial payments giant PayPal has secured a crypto licence from the UK’s Financial Conduct Authority (FCA), granting it the authority to engage in “certain crypto asset activities†within the UK, effective Oct 31, 2023.
PayPal has been registered under the Money Laundering Regulations (MLRs) of the FCA, designed to prevent money laundering and terrorist financing. It has met the FCA’s high standards for compliance and security.
The FCA’s financial services register outlines the specific consumer protections that apply to PayPal’s activities. While some of these protections are provided directly by the FCA, others are offered by the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The register states that PayPal’s crypto licence in the UK is subject to specific requirements and restrictions. According to the register, “This includes but is not limited to ceasing onboarding new customers and restricting existing customers to hold and sell functionality.â€
The register also notes that “The firm cannot expand its current offering in crypto assets, including, but not limited†to crypto exchange services, participation in initial coin offerings, staking, peer-to-peer exchange, and decentralised finance activities.
