PayPal has become the latest company to be registered to offer crypto asset activities in the UK, following a crypto marketing overhaul by the Financial Conduct Authority (FCA).
The new announcement comes amid tougher safeguards on marketing crypto assets which have bested rivals such as Binance.
Last month, the city minister called for the FCA to set a softer and clear approach to crypto rules, only days after the new regulations were introduced.
Penalties for companies both UK-based and aboard not adhering to these marketing rules – focused on activity served towards UK consumers – include an unlimited fine and potentially up to two years imprisonment.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing news sent straight to your inbox each morning
Earlier this year, crypto-firms raised concerns over the extent of activities covered by the new rules – with some companies appearing surprised that global websites will also be affected.
PayPal has revealed that in response to the changes within the sector, it is temporarily pausing the ability of UK customers to buy crypto assets, with an expected to restart in early 2024.
Companies wanting to offer crypto assets to consumers are now obligated to show the FCA they have sufficient safeguards against them being used for crimes such as laundering money or financing terrorism.
The approvals also mean that PayPal UK customers will be transferred to a new British entity, and not PayPal Europe, reflecting the UK’s new rules and departure.
