In a significant development for the cryptocurrency market in the UK, PayPal has obtained registration from the Financial Conduct Authority (FCA) to offer crypto asset activities. This move underscores PayPal’s commitment to serving the British market while establishing a post-Brexit base in the country.

As reported by Reuters, the UK crypto market is eagerly awaiting its first set of regulations. Companies seeking to provide crypto assets must demonstrate robust measures to prevent money laundering and financing of terrorism to comply with FCA requirements.

Furthermore, the FCA has implemented stricter rules on cryptocurrency advertising, causing disruptions for platforms like Binance.

PayPal, a global payments giant that entered the crypto buying and selling arena in 2021, recently announced a temporary suspension of UK customers’ ability to buy crypto assets, commencing October 1. However, the company plans to resume these services in early 2024. Despite the pause, PayPal has received approval from the FCA as an authorized electronic money institution, consumer credit firm, and registered crypto asset business.

Transitioning UK customers to a new entity based in Britain from November 1 demonstrates PayPal’s adaptability to the UK’s post-Brexit landscape. The company has reassured its customers that they will continue to receive the same products and services within the United Kingdom.

Previously, reports speculated that PayPal’s decision to halt cryptocurrency purchases in the UK was influenced by the FCA’s introduction of stricter marketing rules for crypto assets. However, the UK government’s recent update on the regulatory framework for crypto assets highlights a forward-thinking approach, emphasizing risk management alongside fostering innovation.

Recognizing the transformative potential of digital assets, the government aims to enhance the existing regulatory framework to effectively balance benefits and risks, as outlined in the Financial Services and Markets Act 2000 (FSMA).

PayPal’s approval to provide crypto services in the UK showcases its commitment to the British market and compliance with regulatory requirements. While the temporary pause in crypto services continues as planned, PayPal remains focused on delivering a compliant experience for its customers in the UK’s crypto asset sector.

As of writing, the cryptocurrency market’s total market capitalization has been steadily rising since last week, currently standing at $1.250 trillion. Bitcoin (BTC) dominates the market with a 53.8% share. Maintaining the current trading level above $1.25 trillion is crucial for the market, as it signifies a strong support level that needs to be established to pave the way for higher highs after the collapse of FTX in November 2022.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.