Recently, the Financial Conduct Authority (FCA) registered PayPal to provide cryptocurrency asset operations in the United Kingdom. This action reflects PayPal’s commitment to serve the British market as it sets up a post-Brexit basis in the UK.
The UK’s cryptocurrency industry is reportedly awaiting its first set of laws; in order to provide crypto assets, businesses must prove to the FCA that they have strong measures in place to stop money laundering and the funding of terrorists. This information was reported by Reuters.
Additionally, the FCA has imposed more stringent regulations on cryptocurrency marketing, which has disrupted websites like as Binance.
PayPal Is Accepted By FCA As A UK-Registered Crypto Business
Global payments firm PayPal, which launched services for buying and selling cryptocurrencies in 2021, stated on October 1 that it would be temporarily suspending its UK clients’ ability to purchase cryptocurrency assets.
Early in 2024 is when the corporation plans to start up these services again. PayPal has been approved by the FCA to operate as a registered crypto asset business, consumer credit agency, and permitted electronic money institution notwithstanding the delay.
According to the article, PayPal is adjusting to the UK’s post-Brexit environment by moving its UK clients to a new British corporation on November 1.
PayPal has given its clients the assurance that they would still receive the same goods and services in the UK.
Regulatory Framework of the UK Government
According to earlier reports, the FCA’s implementation of tougher marketing regulations for digital assets had an impact on PayPal’s decision to stop selling cryptocurrencies in the UK.
Nonetheless, as noted by Bitcoinist, the UK government recently updated the legal framework for cryptocurrency assets with an emphasis on risk management and innovation encouragement, indicating a progressive stance.
The government intends to improve the current regulatory framework under the Financial Services and Markets Act 2000 (FSMA) in order to successfully balance advantages and risks, acknowledging the revolutionary potential of digital assets.
In conclusion, PayPal’s clearance to offer cryptocurrency services in the UK demonstrates both its dedication to the British market and compliance with legal standards.
PayPal continues to be committed to provide its UK-based clients with a compliant experience in the crypto asset market, even while the scheduled temporary halt of its crypto services continues.
As of this writing, since last week, there have been inflows and a constant rising trend in the entire market capitalization of the cryptocurrency market. At now, the market capitalization is $1.250 trillion, with Bitcoin (BTC) holding a dominant 53.8% stake.
With the cryptocurrency market valued at over $1.25 trillion, the present trading level is crucial. It was last violated in November 2022, just before FTX went bankrupt.
The market needs to go through an accumulation period in order to accomplish more gains and solidify this level as a support, opening the door for retesting higher highs.
