PayPal Gains Crypto Clarity in the UK

2 Nov 2023 by Rory Kejzerko 2 min read

Although partial to imposing ludicrous user policies every once in a while, payments giant PayPal is continuing to expand its crypto offerings by way of registering with the UK Financial Conduct Authority (FCA) as a crypto service provider.

Such news came to surface via the regulator’s own website, as per an update from 31st October ‘PayPal UK Limited’ is now listed as a ‘Registered Cryptoasset firm’ in the UK. In doing so, such 2020-founded list - which includes the likes of MoonPay, eToro, and Revolut - now features 43 different entities.

In practice, what this development means is that ‘PayPal UK Limited’ is now able to engage in ‘certain crypto asset’ activities. As such terminology infers, there will still be a myriad of restrictions in the company’s way however, such as its inability to broaden its current crypto offerings via means such as exchange services, ICO participations, staking, peer-to-peer exchanges, and other DeFi activities such as lending and borrowing.

As its registration approval required compliance with the FCA’s anti-money laundering rules, it comes two months after PayPal put a temporary halt on its crypto purchase services in order to begin complying with the demands set.

The move also comes as part of PayPal’s evident ploy to become an integral contributor to the future crypto landscape, as in addition to launching its own stablecoin PayPal USD (PYUSD), it recently launched ‘on and off ramps’ for offering 360 crypto services to Web3 platforms.

Ironically, these ventures into the world of decentralisation come one year on from the company’s now-rescinded ‘misinformation’ policy, which ordered users accused of ‘misinformation spreading’ to pay $2,500 fines (something which obviously sparked a whole heap of backlash when first announced).

And finally, when it comes to the UK as a whole, PayPal’s cemented position in its crypto landscape should do nothing but enhance its push to become a global crypto hub - an endeavour that was recently bolstered through the imminent introduction of new regulations for fiat-backed stablecoins (which are set to commence next year).

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