PayPal UK has taken a significant step in the world of cryptocurrency by registering with the UK’s Financial Conduct Authority (FCA). This move allows the company to engage in “certain cryptoasset activities” within the country. To operate in the UK’s crypto market, companies must gain registration approval and adhere to the FCA’s anti-money laundering regulations.
In 2023, it became the fourth firm to secure FCA’s crypto registration, following Interactive Brokers, Bitstamp, and Komainu. This registration not only allows PayPal to operate within the UK crypto market but also permits the company to approve its own crypto-related communications in line with the recently imposed marketing regulations.
In August, the company had temporarily paused crypto purchases in the UK to comply with these new regulations. However, the registration on the UK crypto register does not impact this temporary pause, as clarified by a PayPal spokesperson.
The company spokesperson stated:
The Financial Conduct Authority has approved PayPal UK Ltd as an authorised electronic money institution and consumer credit firm, and registration as a crypto asset business, enabling the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on 1 November 2023
Nevertheless, PayPal UK will have certain limitations. It won’t be able to expand its current crypto offerings into activities such as staking, exchanging crypto assets, participating in initial coin offerings, and engaging in decentralized finance activities like lending without obtaining permission from the FCA, as outlined on the regulator’s website.
Growth & Confidence at PayPal Holdings
Meanwhile, the company appears to be making strides in its turnaround efforts. Its third-quarter results surpassed analyst expectations, with adjusted earnings climbing 20% year-over-year to $1.30 per share and revenue reaching $7.4 billion, in line with projections. Total payment volume rose by 13% to $387.8 billion, though the total number of active accounts decreased by four million to 428 million.
Following these positive results, the company raised its full-year earnings forecast and announced Jamie Miller as its new chief financial officer, signaling its commitment to ongoing growth and development in the fintech sector.
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