In a recent development, PayPal has been registered by the Financial Conduct Authority (FCA) to offer crypto asset activities in Britain. This move comes as PayPal establishes a post-Brexit base in the UK, reflecting its commitment to serving the British market.
According to a Reuters report, the crypto market in the UK awaits its first set of regulations; companies seeking to offer crypto assets must demonstrate to the FCA that they have robust safeguards to prevent money laundering and financing of terrorism.
The FCA has also implemented stricter measures on the marketing of cryptocurrencies, causing disruptions for platforms like Binance.
FCA Approves PayPal As Registered Crypto Business In The UK
PayPal, a global payments giant that introduced crypto buying and selling services in 2021, announced the temporary suspension of UK customers’ ability to buy crypto assets starting from October 1.
The company expects to resume these services in early 2024. Despite the pause, PayPal has received approval from the FCA as an authorized electronic money institution, consumer credit firm, and registered crypto asset business.
Per the report, as of November 1, PayPal’s UK customers will be transitioned to a new entity based in Britain, marking the company’s adaptation to the UK’s post-Brexit landscape.
PayPal has assured its customers that they will continue to receive the same products and services in the United Kingdom.
UK Government’s Regulatory Framework
Earlier reports indicated that PayPal’s decision to halt cryptocurrency purchases in the UK was influenced by the FCA’s introduction of stricter marketing rules for crypto assets.
However, as reported by Bitcoinist, the UK government’s recent update on the regulatory framework for crypto assets emphasizes managing risks while encouraging innovation, signaling a forward-thinking approach.
The government recognizes the transformative potential of digital assets and aims to enhance the existing regulatory framework under the Financial Services and Markets Act 2000 (FSMA) to effectively balance benefits and risks.
In summary, PayPal’s approval to provide crypto services in the UK signifies its commitment to the British market and adherence to regulatory requirements.
While the temporary pause in crypto services continues as planned, PayPal remains focused on offering its customers in the UK a compliant experience in the crypto asset sector.
As of the time of writing, the total market capitalization of the cryptocurrency market has been consistently trending upwards and experiencing inflows since last week. Currently, the market cap stands at $1.250 trillion, with Bitcoin (BTC) dominating with a market share of 53.8%.
The current trading level above $1.25 trillion holds significant importance for the crypto market. It has not been breached since November 2022, before the collapse of FTX.
To achieve further gains, the market must undergo an accumulation phase and establish this level as a strong support, paving the way for retesting higher highs.
Featured image from Shutterstock, chart from TradingView.com