The U.K’s Financial Conduct Authority (FCA) has approved PayPal as an authorized cryptocurrency service provider, according to a recent announcement. This approval allows PayPal to offer cryptocurrency services to its customers in the U.K. and further solidifies the company's position in the crypto market.
The FCA's approval means that PayPal has met the necessary regulatory requirements to operate as a cryptocurrency service provider in the U.K. This includes complying with the amended Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and registering with the FCA. PayPal UK Limited is listed among the almost 50 companies that have registered with the FCA.
PayPal's website already states that it supports crypto transfers between its platform, Venmo, and various other wallets and exchanges. With the FCA's approval, PayPal can now expand its cryptocurrency services to its U.K. customers, allowing them to buy, sell, and hold cryptocurrencies through the platform.
In August, PayPal announced that it was rolling out its new stablecoin, PayPal USD (PYUSD). PYUSD is "designed to maintain a stable $1 USD value," according to PayPal's website. "It’s backed by dollar deposits, US treasuries, and cash equivalents." The website states that the new stablecoin can be held on PayPal's app or website and can be traded with others in the U.S. for free. Users can utilize PYUSD to purchase other cryptocurrencies supported by PayPal or to check out at "millions" of virtual retailers. PayPal says that stablecoins "can provide inclusive, broad access to the financial system, and can enable fast and efficient money movement."
PayPal sees stablecoins as a way to provide inclusive and efficient access to the financial system. The company believes that stablecoins can enable fast and secure money movement, making them a valuable tool for both individuals and businesses.