PayPal Plays by Britain’s Crypto Rules for Regulatory Reward

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The crypto landscape in the UK is changing as major payment platform PayPal receives approval to expand its digital asset operations across the pond. After years of navigating complex regulations, PayPal has been granted a license that could unlock new opportunities for Brits venturing into virtual currencies.

Complying with UK Watchdogs

As the early Wild West days of crypto give way to greater oversight, PayPal recognized the need to work within the system rather than outside it. The Financial Conduct Authority (FCA) keeps a close eye on any company offering crypto services in Britain. While some foreign exchanges havebucked regulations, PayPal opted for a different approach.

In August, PayPal announced a pause on crypto purchases in the UK to put policies and procedures in place that satisfied the FCA. This demonstrated a willingness to cooperate that no doubt helped its cause with the watchdog. Sure enough, on Halloween the FCA added PayPal to its register of authorized crypto businesses. PayPal can now legally offer digital asset features to customers under its new UK branding.

Continuing the Pause

The Financial Conduct Authority FCA

Of course, just getting approval was only part of the journey. PayPal still aims to thoughtfully roll out crypto integration rather than rushing into a half-baked solution. Officials confirmed the pause on British crypto buys will persist until early 2024 as previously stated. This prolonged hiatus allows time to integrate robust know-your-customer processes and comply fully with Anti-Money Laundering rules.

While not exciting for waiting users, taking a staggered approach shows PayPal wants to get regulation right from the start. Hurrying implementation risks non-compliance down the line, which could jeopardize the hard-earned license. With the FCA continuing crackdowns, moving deliberately makes sense – better late than never, as the saying goes.

Laying Down Roots

The license automatically transfers UK PayPal customers to a new entity based in Britain rather than Europe following Brexit. This establishes an official domestic presence and post-EU structure. PayPal also aims to expand local staffing with ten new UK jobs covering financial crime prevention and crypto reporting.

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