Crypto: PayPal achieves a Major Milestone in the United Kingdom!
PayPal, the payment giant, has just achieved another crucial milestone. Indeed, the UK’s financial market regulator, the Financial Conduct Authority (FCA), has granted it the green light to offer crypto services across the entire territory of the United Kingdom. Let’s take a closer look!
PayPal UK registers with the FCA
For the past 3 years, PayPal has allowed its customers to buy, sell, and transact with cryptocurrencies such as Bitcoin (BTC), Ripple’s XRP, and Litecoin (LTC). Recently, the online payment giant has launched its own stablecoin PYUSD, causing significant disruptions in the entire cryptocurrency market. And that’s not all.
According to The Block, PayPal’s UK branch is now registered with the FCA to deploy certain activities related to cryptocurrencies in the United Kingdom. This registration took effect last October 31st, according to the official data from the Financial Conduct Authority’s website.
This registration was likely facilitated by the recent publication of the final proposals regarding the future regulation of crypto assets by the British Treasury.
As per CoinDesk, PayPal UK Limited has been registered as a provider of cryptocurrency services. Consequently, the online payment specialist could offer ‘certain activities related to crypto-assets.’ However, it must comply with the anti-money laundering rules imposed by the FCA at the same time.
It’s worth noting that being registered authorizes PayPal to advertise its products and services within a legal framework. Remember, the company had to temporarily halt crypto purchases via its platform last August in order to comply with existing laws.
A Serious Warning
On the same day, The Guardian mentioned measures taken by the FCA against PayPal and QVC. The financial regulator expressed concerns about Britons rushing into the ‘buy now, pay later’ (BNPL) system amid soaring inflation.
However, some activists have urged Chancellor Sunak’s government to establish proper regulations for this sector, considering its current multi-billion-pound weight.
Under such pressures, the issuer of the PYUSD stablecoin had to revise certain clauses in its contract.
“[PayPal] voluntarily made changes in July 2023 to certain legal terms regarding its BNPL offering ‘PayPay Pay in 3.’ We have worked closely with the regulatory authority on these matters and have now agreed to an arrangement with it. Customers who contracted Pay in 3 loans under the old terms will now have greater clarity,” explained a PayPal spokesperson.
It’s important to note that in the United Kingdom, regulations regarding crypto advertisements are very strict. In case of illegality, imprisonment is a potential consequence.”
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.