PayPal gets crypto green light in UK as it sets up post-Brexit base

London: PayPal has been registered to offer cryptoasset activities in Britain, the Financial Conduct Authority said on its website, as the global payments giant builds a post-Brexit base in Britain.

While the crypto market in Britain awaits its first set of rules, companies that want to offer cryptoassets must show the FCA that they have sufficient safeguards against them being used for laundering money or financing terrorism.

The regulator has also brought in tougher safeguards on marketing cryptoassets, which have snarled rivals like Binance.

PayPal, which first launched crypto buying and selling in 2021, said in August that it was temporarily pausing the ability of UK customers to buy cryptoassets from Oct. 1, and that it expected to restart in early 2024.

PayPal said on Wednesday that the FCA has approved the company as an authorised electronic money institution and consumer credit firm, as well as its registration as a cryptoasset business, although the pause in UK crypto services would continue as previously announced.

The approvals mean that from Nov. 1 PayPal's UK customers will be transferred to a new entity based in Britain from PayPal Europe, which had hitherto served UK customers, reflecting Britain's departure from the European Union.

"PayPal continues to offer our customers the same products and services in the United Kingdom," it said.