PayPal announces halt on UK crypto purchases
PayPal has announced that it will temporarily pause crypto buying services in the UK starting from Oct. 1, 2023, with a planned resumption in early 2024.
The latest decision, outlined in an email to select users on Aug. 14, comes in response to new regulatory requirements by the UK Financial Conduct Authority (FCA).
While crypto buying will be unavailable during this period, users can continue to hold and sell their cryptocurrencies. However, PayPal did not clarify whether users can transfer cryptocurrencies to other wallets or exchanges, a feature that currently seems limited to US users.
Compliance with new UK rules
The decision to pause the buying services comes as PayPal aims to comply with new regulations introduced by the UK FCA. The company will be required to “implement additional steps before customers can purchase crypto,” though specific details of the rules have not been revealed.
The UK is set to enforce a Crypto Travel Rule in September 2023, which mandates crypto companies to collect information about transaction parties. Moreover, new promotional rules concerning crypto promotion and advertising will be enacted in October. Neither regulation, however, seems to directly align with PayPal’s stated reasons for the service change.
PayPal expands crypto offerings in US
The suspension of UK services is a noteworthy move for PayPal, especially as the company is currently expanding its crypto offerings in the US.
As reported by crypto.news, the company unveiled a US dollar-pegged stablecoin on Aug. 7, PayPal USD (PYUSD). Issued by Paxos Trust Company and regulated by the New York State Department of Financial Services, PYUSD is described as a bridge between fiat currencies and the digital asset space.
The stablecoin, valued at one USD per unit, aims to enhance digital asset payments’ compatibility with exchanges, wallets, and Web 3 applications. Short-term US Treasuries and similar cash equivalents reportedly back it.
