The Financial Conduct Authority said on its website that PayPal has registered to provide cryptoasset operations in the United Kingdom as the multinational payments company establishes a presence in the country following Brexit.
Businesses that wish to provide crypto assets must demonstrate to the FCA that they have enough measures to prevent them from being exploited for money laundering or terrorism funding, even as the British crypto market waits for its first set of regulations.
Additionally, the government has tightened restrictions on the marketing of crypto assets, which has hindered competitors like Binance.
PayPal, which began offering cryptocurrency buying and selling in 2021, announced in August that it would be temporarily stopping UK clients’ ability to purchase crypto assets as of October 1 and that it planned to resume in early 2024.
PayPal stated on Wednesday that the FCA had confirmed the company’s registration as a crypto asset business, as well as its status as an authorized electronic money institution and consumer credit organization. However, the company maintained the previously announced halt to its UK crypto services.
Following Britain’s exit from the European Union, the approvals imply that, as of November 1, PayPal’s UK clients would be moved from PayPal Europe, which had hitherto catered to UK customers, to a new company headquartered in Britain.
“PayPal continues to offer our customers the same products and services in the United Kingdom,” added the statement.