PayPal (PYPL) Gets FCA Approval for Crypto Business in the UK
The Financial Conduct Authority (“FCA”) has announced that global fin-tech behemoth PayPal Holdings, Inc. PYPL has been able to register for offering cryptoasset activities in Britain. The announcement comes while the market in Britain awaits the first set of rules under which cryptocurrency will operate. However, the very fact that the payments giant has been incorporated into the mainstream is big news.
PayPal had started operating in the space in 2021. However, in August 2023, it announced that it would temporarily pause its transactional operations in crypto starting Oct 1 and would resume sometime early in 2024. The news comes as a big boost to the company in its attempts to become a legitimate market leader in the British space.
Per a FCA spokesperson, the governing body has approved PayPal UK Ltd as an authorized electronic money institution and consumer credit firm. Its registration as a crypto asset business enables the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on Nov 1, 2023.
PYPL’s expected earnings growth rate for the current year is 19.9%. The Zacks Consensus Estimate for its current-year earnings has not changed over the past 60 days. PYPL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Major Western countries are finally trying to bring crypto into the mainstream. The recent rout in Wall Street has also coincided with a Bitcoin (BTC) bull run, showcasing investor mood. Of late, the major development in this next-stage crypto move has been the Court of Appeals siding with Grayscale in its lawsuit against the United States Securities and Exchange Commission (“SEC”).
Previously, the SEC had denied Grayscale’s application to convert its popular Grayscale Bitcoin Trust GBTC to an ETF. The SEC had until Friday to appeal the judge’s opinion that it had failed to provide a coherent explanation for its denial. But it did not take up that option in a significant act of omission. This will now pave the way for various companies from the traditional sector that are waiting for the SEC’s approval to jump into the crypto fray. BlackRock, Inc. BLK and Franklin Resources, Inc. BEN are probably two of the biggest players in the race. BlackRock and Franklin Resources both currently carry a Zacks Rank #3.
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Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Grayscale Bitcoin Trust (GBTC): ETF Research Reports
