Payments giant PayPal has announced that it will temporarily suspend crypto purchases in the United Kingdom until early 2024. The decision comes in response to new regulations set forth by the UK’s Financial Conduct Authority (FCA).
Response to Regulatory Changes
The suspension, starting on October 1, will prevent customers from making new crypto purchases through PayPal. However, those who have previously bought crypto assets via PayPal can continue to hold or sell them on the platform. The move is a direct response to new rules enacted by the FCA requiring crypto firms to implement additional steps before allowing customers to purchase crypto. PayPal stated in a press release, “We’re taking this measure in response to new rules enacted by the UK Financial Conduct Authority (FCA) that require crypto firms to implement additional steps before customers can purchase crypto.”
Stricter Rules for Crypto
The FCA, Britain’s financial regulator, is set to introduce more stringent rules for crypto assets on September 1. Under the new rules, cryptocurrencies will be classified as “restricted mass market investments.” PayPal emphasized its commitment to compliance in a statement, “We remain deeply committed to our compliance obligations, and PayPal consistently works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.”
Despite the temporary halt in the UK, PayPal has been actively expanding its crypto footprint, especially in the United States. In a significant development, the company recently launched its stablecoin, PayPal USD (PYUSD), earlier this month.
