PayPal UK has registered with the UK’s Financial Conduct Authority (FCA) to offer crypto services in the region – but the payments giant still faces a number of restrictions.
According to the FCA website, PayPal UK was registered as of Oct. 31, which is a required step to offer any type of crypto services to UK customers. However, PayPal isn’t allowed to onboard new customers or expand its services without reaching an agreement with the FCA. Existing customers can also hold or sell their digital assets but can’t buy.
PayPal, which added the ability to buy and sell crypto during the bear market of 2021, announced in August that it would pause crypto purchases for UK customers on Oct. 1 ahead of expected stricter FCA rules. PayPal said at the time that the pause would last until early 2024.
In the absence of broader crypto regulations in the region, the FCA’s rules are designed to check for safeguards against crypto being used for money laundering and terrorism. The FCA also has rules for how crypto assets are marketed, requiring the need for crypto firms to have an FCA-approved partner for promotional activities.
Crypto exchange Binance secured a partner ahead of the rule change only to see the FCA prohibit that partner a week later.
