PayPal UK Limited, a subsidiary of the global online payments giant PayPal, has been registered with the UK Financial Conduct Authority (FCA) as a cryptoasset firm.
This means that the company is now authorised to carry out certain activities related to cryptocurrencies in the country, such as providing crypto exchange services and custody wallets.
The registration was effective from October 8, 2021, according to the FCA’s register. It also indicates that PayPal UK Limited is able to approve its own financial promotions related to cryptoassets under the newly imposed regulatory regime.
This means that the company does not need to seek prior approval from the FCA for its crypto-related marketing materials, as long as they comply with the relevant rules and standards.
The FCA’s new regulations for cryptoasset firms came into force on October 8, 2021, following a consultation period that started in July 2020.
The regulations aim to enhance consumer protection and market integrity in the crypto sector, by requiring firms to provide clearer and more accurate information about the risks and benefits of investing in cryptoassets.
The regulations also introduce a 24-hour cooling-off period for customers who want to buy cryptoassets, during which they can change their mind and cancel their purchase without any penalty.
However, PayPal UK Limited had temporarily suspended its crypto sales in the UK market, in response to the FCA’s regulations.
The company announced on October 1, 2021, that it would pause its crypto service for a minimum of three months, starting from October 1, 2021.
The company said that it needed more time to adapt its systems and processes to comply with the new rules and to ensure a smooth customer experience.
PayPal UK Limited launched its crypto service in August 2021, following the success of its US counterpart, which started offering crypto buying and selling options in October 2020.
The service allows customers to buy, sell and hold four cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Customers can also use their crypto balance to pay for goods and services at millions of PayPal merchants worldwide.
PayPal UK Limited said that it expects to resume its crypto service in early 2024, after completing the necessary adjustments and testing.
The company also said that it remains committed to supporting the growth and innovation of the crypto industry in the UK and globally.
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