Important news for the blockchain industry: PayPal has finally given the green light to offer crypto-related services in the UK. What does this mean and what changes will it entail? See below for all the details.
A step forward in crypto adoption by PayPal
As anticipated, PayPal, one of the world’s leading payment companies, has received approval to offer crypto-related services in the UK.
This approval, specifically, was granted by the country’s Financial Conduct Authority (FCA), allowing the company to promote and provide specific crypto services to citizens.
According to the FCA website, PayPal UK Limited has been successfully registered as a crypto service provider. This approval demonstrates the company’s compliance with the anti-money laundering regulations set by the regulatory authority.
In fact, PayPal has been authorized to engage in “certain crypto-asset activities.”
As we know, several nations have recently faced the complex challenge of regulating digital assets, and each decision has helped shape the country’s attitude toward this sector.
Thus, even the United Kingdom has set clear standards, and PayPal has adapted.
Back in August, PayPal announced the suspension of cryptocurrency purchases in the UK until 2024, citing the need to adapt to evolving regulatory standards.
These same standards have been followed by numerous companies, including PayPal, seeking approval.
In addition, the payment company has shown interest in the digital asset environment, introducing its stablecoin earlier this year. The recent registration marks another step toward continued involvement in the cryptocurrency market as a whole.
PayPal also explores a scenario for NFTs
As evidenced by the recent patent application, filed on September 21, PayPal is taking significant steps into the world of NFTs.
In fact, this patent application from PayPal reveals a distinctive scenario in which NFT transactions could be routed through a third-party service provider, with Ethereum mentioned as the main reference in the application.
This initiative presents an adaptable framework that enables fractional purchases of NFTs and potentially paves the way for the circulation of governance tokens for commerce.
In addition, the patent extends beyond digital collections and embraces any entity representing digital data that can be tracked on a decentralized blockchain ledger.
Special features of the patent include a proposal to use a decentralized autonomous organization (DAO) linked to the service provider, aimed at improving NFT liquidity on a dedicated platform.
The application also revealed an “omnibus wallet” directly connected to the service provider, with transactions that would not be recorded on the blockchain, eliminating associated gas fees.
PayPal also explores the concept of generating revenue from NFT royalties and proposes the integration of third-party storage and payment services to enhance the user experience, simplifying compliance and risk management.
The flexibility of the system is evident in its ability to accommodate different currencies. Although the official launch date of PayPal’s NFT marketplace remains unknown, the goal is to create an environment where investors, creators, and users can thrive within and beyond the blockchain.
PYUSD’s flight: soaring market capitalization
Recently, PayPal’s stablecoin PYUSD reached a market capitalization of $94,396,540, precisely two months after its launch, thanks to the creation of tokens worth $50 million.
Recently, Julio Moreno, head of research at CryptoQuant, shared on X (formerly Twitter) the amazing progress of the Ethereum-based PayPal stablecoin, PYUSD.
Moreno particularly highlighted PYUSD’s remarkable milestone, with a maximum market valuation of nearly $100 million, currently valued at approximately $94,396,540.
The significant increase in PYUSD’s market capitalization followed the creation of $50 million of stablecoin on Sept. 29, a step that further solidified its position.
Moreno also revealed that the newly created tokens were transferred to Crypto.com, a major cryptocurrency exchange, highlighting the platform’s support for PYUSD.
Moreno’s tweet was accompanied by a chart tracking PYUSD’s supply over time, confirming a steady increase in supply since its introduction in August.
Source: https://en.cryptonomist.ch/2023/11/02/paypal-revolutionises-uk-crypto-services/