Payment giant PayPal has been successful registered with the UK Financial Conduct Authority (FCA) to offer crypto services in the country, according to the regulator’s website.
The registration, which comes into effect on October 31, will allow PayPal to undertake certain cryptocurrency activities with the approval of the FCA.
Registered, but limited
Despite PayPal’s registration, the payment processor still faces several restrictions in its crypto operations in the UK
Without permission from the FCA, PayPal cannot onboard new customers or allow old customers to purchase new crypto assets. The company is also limited to crypto staking, DeFi activities, and initial coin offerings (ICO), among others.
PayPal is also prohibited from expanding its current offering of crypto assets or “operating a machine that uses the automated process to exchange crypto assets for cash or cash for crypto assets” without FCA approval.
However, the PayPal registration is in stark contrast to the departure of numerous crypto companies from the country. Since the FCA’s crypto promotion regime came into effect, several companies, including Binance, have left the country due to compliance-related issues.
Notably, PayPal previously shut down its services in August as part of its compliance process.
UK crypto regulations
On October 31, the British Treasury published a proposal on crypto regulation after the consultation process.
According to the proposal, authorities plan to integrate crypto activities into financial services regulations, meaning that all crypto-related companies will need permission from the Financial Conduct Authority to operate in the country.
The document also noted that crypto companies must provide the FCA with full disclosure about specific activities.
In addition, the UK Parliament recently passed a bill allowing law enforcement agencies to seize cryptocurrency assets linked to criminal activities, including money laundering, fraud and ransomware attacks.