[NEWS] PayPal obtains license in the UK to provide cryptocurrency services

It has been revealed that PayPal, a major internet payment company, has obtained authorization from the UK's Financial Conduct Authority (FCA) to provide cryptocurrency services under the name PayPal UK.

According to the FCA's announcement, PayPal UK has been authorized only for certain cryptocurrency transactions since the 31st of last month.

PayPal will transfer all services provided to UK customers to PayPal UK. Going forward, cryptocurrency services will be provided by PayPal UK, which is based in the UK, rather than PayPal US.

Currently, the UK cryptocurrency market is waiting for the introduction of cryptocurrency regulations, but even before the introduction of regulations, companies that wish to provide cryptocurrency services will need to show the FCA that they are taking measures to prevent cryptocurrency services from being used for money laundering and terrorist financing.

At the moment, PayPal UK cannot acquire new customers, and existing customers can only hold and sell cryptocurrency. In addition, there are restrictions on the provision of staking services and participation in DeFi, such as lending and borrowing cryptocurrency.

PayPal, which began buying and selling crypto assets in 2021, announced that it would suspend crypto purchases by UK customers from October 1 of the same year, with plans to resume them in early 2024.

The reason is said to be that, at the request of the FCA, strict new regulations have been introduced for businesses promoting crypto assets to UK consumers to ensure that users who purchase crypto assets understand the risks.

A PayPal representative said that the company will continue to work closely with regulators in each country and comply with applicable rules and regulations in the markets in which it operates.

In August, PayPal announced the stablecoin PayPal USD (PYUSD), beginning to show its presence as a major payment company in new areas.

Reference: Announcement
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