Cryptocurrency-friendly payment platform PayPal is making some crypto adjustments on its platform in the United Kingdom to comply with local financial regulations. PayPal temporarily suspends the option for its customers in the United Kingdom to purchase cryptocurrencies like Bitcoin. As of October 1, 2023, PayPal will temporarily halt crypto asset purchases in the United Kingdom.
Crypto Assets Can Be Purchased in Early 2024
A spokesperson for PayPal UK said, “Existing PayPal customers who already own cryptocurrency can hold their funds on our platform at no charge and can also sell their currencies at any time.” In an email sent to specific UK customers, PayPal stated that it will temporarily suspend cryptocurrency purchases in the United Kingdom starting from October 1, 2023. PayPal added, “We hope to re-enable crypto purchases in early 2024.”
PayPal stated that it decided to take this measure in response to new rules implemented by the Financial Conduct Authority (FCA) in the United Kingdom, which require crypto firms to take additional steps for customers to be able to purchase cryptocurrencies. The announcement included the following statement.
“While we work to meet these new regulations, you won’t be able to buy crypto assets using PayPal.”
Crypto-Friendly PayPal
PayPal has emerged as a significant cryptocurrency-friendly platform in recent years. One of its latest efforts related to crypto was the launch of PayPal USD (PYUSD) stablecoin in early August. The company later introduced a new cryptocurrency hub feature in its interface. PayPal initially launched its cryptocurrency services in the United States in late 2020.
The news comes shortly after the FCA reported that out of a total of 291 crypto license applicants since 2020, only 13% are registered with the authority. Last month, the FCA also announced that all crypto asset firms must ensure their marketing strategies comply with the financial promotion regime in the UK by October 2023.
