- PayPal has attained crypto asset business registration status in the UK.
- The global payments giant is now allowed to offer certain digital asset activities.
- The development doesn’t affect its recent suspension of some regional services.
Global payments giant PayPal has officially joined the seemingly stagnant list of crypto companies approved by the Financial Conduct Authority (FCA) to offer digital assets services in the UK.
As of November 1, the FCA’s updated crypto register indicated that PayPal UK Limited has been registered to offer “certain crypto asset activities” since October 31. The regulator also notes that the company has attained “Money Laundering Regulations Status” since October 31.
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Even as PayPal scored the win, the company has had its fair share of troubles in the UK as the regulatory environment tightens on the nascent digital assets sector.
According to the FCA, PayPal is still bound by some restrictions.
“This firm has requirements or restrictions placed on the financial services activities that it can operate. Requirements or restrictions can include suspensions,” the notice read.
UK Crypto Services Still Suspended
The development comes after the company recently suspended crypto sales in the UK following stringent digital asset promotion rules enacted by the FCA.
While the crypto business registration status granted by the regulator is a great milestone for PayPal, it doesn’t affect the temporary suspension, according to a representative of the company who spoke to London-based media outlet Financial News.
Further, the regulator notes that PayPal prohibits providing certain services to new and existing customers.
“This includes but is not limited to ceasing onboarding new customers and restricting existing customers to hold and sell functionality, and the Firm cannot expand its current offering in crypto assets, including, but not limited to facilitating or participating in decentralized finance activities such as Cryptoasset lending and borrowing,” the FCA warned.
Other crypto-focused companies that have made it to the FCA crypto asset business registration list in 2023 include Bitstamp, Komainu, and Interactive Brokers, making PayPal the fourth.
Read why observers are concerned about centralization with regard to PayPal’s stablecoin:
PayPal’s Stablecoin Sparks Centralization Concerns
Take a deep dive into the potential of PayPal’s PYUSD stablecoin:
PYUSD Stablecoin: How PayPal Plans to Bring Crypto to the Masses
