PayPal Secures a License as a U.K Crypto Service Provider

Popular payment provider PayPal received its license from the Financial Conduct Authority (FCA) in the United Kingdom, recognizing the provider as a crypto asset business. The registration allows PayPal U.K. Limited to carry out crypto-related marketing in the U.K. and be compliant with the new regulatory framework. This move is part of the company’s strategy to reinstate its crypto services in the British Isles after a temporary pause. The expectations are for the payment giant to resume its crypto activities at the beginning of next year.

The biggest operational shift resulting from the FCA crypto license will be the migration of its customers from PayPal Europe to the newly established U.K. entity. Something like this was expected, considering that the U.K. left the European Union, and PayPal must adapt to the new regulatory landscape to continue providing its services and products to its UK clientele.

However, the registration does not offer a blank check to PayPal. The renowned digital wallet will have to navigate multiple restrictions of its U.K. crypto activities. The payment provider is restricted from initial coin offerings, crypto staking, and DeFi activities and is not allowed to onboard new customers or enable existing users to purchase new crypto assets without the blessing from the FCA. And PayPal’s freedoms are additionally curtailed by restricting the expansion of current crypto assets offerings.