PayPal Gains Approval to Offer Crypto Services in the UK

<p>PayPal
has received approval from the Financial Conduct Authority (FCA) to provide
cryptocurrency services in the United Kingdom. According to official FCA data,
PayPal has been registered to offer "certain crypto asset activities"
in the UK since October 31, 2023.</p><p>The
FCA's Restrictions on PayPal's Crypto Activities</p><p>The
FCA granted PayPal the ability to offer cryptocurrency services. However,
certain requirements and restrictions have been placed on its financial
activities. These limitations include stopping the onboarding of new customers
and restricting existing customers to holding and selling cryptocurrency assets
only. </p><p>PayPal
is not permitted to expand its current offerings in the crypto space. This
restriction encompasses various crypto-related activities. The restriction
includes crypto exchange services, participation in initial coin offerings,
staking, peer-to-peer exchange, and decentralized finance activities such as
lending and borrowing.</p><p>PayPal
joins the ranks of other firms like Interactive Brokers, Bitstamp, and Komainu,
making it the fourth company to receive the FCA's crypto registration in 2023.
This licensing development follows PayPal's brief suspension of cryptocurrency
purchases for its UK customers in early October. The company stated in August
that it was working to comply with new regulatory requirements in the country.</p><p>The
United Kingdom has been increasingly establishing itself as a significant
<a href="https://www.financemagnates.com/tag/cryptocurrency/" target="_blank" rel="follow">cryptocurrency</a> market. According to an October 2023 report by blockchain
analytics firm Chainalysis, the UK leads Central, Northern, and Western Europe
in terms of raw cryptocurrency transaction volume. </p><p>Furthermore,
a study by the crypto tax platform Recap identified London as the world's most
crypto-ready city for business in February 2023. These trends highlight the
growing significance of the UK in the global cryptocurrency landscape.</p><p>Komainu Gains Access to the UK
Crypto-Custody Market</p><p><a href="https://www.financemagnates.com/cryptocurrency/komainu-enters-uk-crypto-custody-space-with-fca-registration/">The
FCA has granted regulatory approval to Komainu</a>, a Nomura-backed crypto
platform, allowing it to operate as a custodian wallet provider in the UK's
crypto-custody market under relevant regulations, <a href="https://www.financemagnates.com/">Finance Magnates</a> reported. <a href="https://www.financemagnates.com/tag/komainu/">Komainu</a> will offer
crypto-custody services, including collateral management via its Komainu
Connect platform, for secure and compliant storage of digital assets. </p><p>It
is a step to position Komainu to capitalize on the expanding digital asset
ecosystem in the UK and other key jurisdictions, facilitating the convergence
of traditional and decentralized finance. Komainu has previously obtained
regulatory licenses in Jersey and Italy, and it has been operational in
Singapore since 2021.</p>

This article was written by Tareq Sikder at www.financemagnates.com.