PayPal Gains FCA Green Light for Restricted Crypto Offerings in the United Kingdom

Crypto News– UK authorities have officially given their approval to the payment giant, PayPal, allowing it to offer cryptocurrency services within the country. This permission came into effect on October 31. The Financial Conduct Authority (FCA) confirmed that PayPal has obtained the necessary status regarding anti-money laundering regulations to provide limited cryptocurrency services to its customers.

PayPal Gains FCA Green Light for Restricted Crypto Offerings in the United Kingdom

As mentioned on the FCA website, it states that PayPal is “registered for certain cryptoasset activities.” However, it’s important to note that there are specific crypto-related activities that PayPal is restricted from engaging in. This includes activities like operating cryptocurrency ATMs and acting as a platform for crypto lending.

The FCA has explicitly prohibited PayPal from “operating a machine which utilized the automated process to exchange cryptoassets for money or money for cryptoassets.” Additionally, they have ruled out involvement in decentralized finance (DeFi) activities, which encompasses activities such as cryptoasset lending and borrowing.

Furthermore, the FCA’s guidelines specify that PayPal is not allowed to participate in initial coin offerings (ICOs). These restrictions are put in place to ensure the responsible and compliant provision of cryptocurrency services within the United Kingdom.