PayPal Receives Approval for Digital Asset Services in the UK
PayPal has become the latest company to receive approval to offer digital asset services in the United Kingdom, joining 42 other authorized firms by the Financial Conduct Authority (FCA). The FCA added PayPal to its register on October 31.
Other major players in the sector with FCA approval include Revolut, Uphold Europe, Galaxy Digital, and Fidelity Digital Assets. This year, Interactive Brokers, Bitstamp, and Komainu also obtained approval. The first company to receive the license was Archax Ltd. on August 18, 2020.
A spokesperson for PayPal confirmed the approval, stating, “The FCA has approved PayPal UK Limited as an authorised electronic money institution and consumer credit firm, and registration as a cryptoasset business, enabling the transfer of PayPal’s UK customer accounts to this new UK entity from PayPal Europe on November 1, 2023.”
PayPal has been investing in its digital asset services as part of its diversification strategy. In August, it launched PayPal USD (PUSD), a U.S. dollar-denominated stablecoin. However, due to the FCA’s regulatory crackdown, PayPal temporarily suspended its digital asset services in mid-August to meet the new requirements.
The FCA approval allows PayPal to offer more digital asset services and advertise to UK investors. However, the license does not affect the ongoing service suspension. In the U.S., PayPal’s PUSD stablecoin is facing scrutiny from regulators, with a subpoena from the SEC’s Enforcement Division.
### News source: coingeek.com