PayPal Will Pause Crypto Purchases In UK From October 1 Under New Rules
- PayPal pauses cryptocurrency sales as it operates due to compliance with new FCA rules.
- The sale of cryptocurrencies on its platform is likely to resume as early as 2024, with purchases and storage still made available to users.
- PayPal is expected to launch its own stablecoin in the next few weeks.
According to a notice to customers, PayPal has announced that due to the UK’s Financial Conduct Authority (FCA) coming up with new rules, it will come into effect on October 1, 2023.
“On October 1, 2023, PayPal will temporarily pause the ability for UK customers to buy crypto on our platform. We expect to re-enable crypto purchases in early 2024.”
Cryptocurrency purchases in the UK are temporarily suspended and will resume in early 2024 (exact date unknown). The company did not specify which rules are involved but said it will require the company to “take additional steps before customers can purchase cryptocurrencies.”
The company is deeply committed to complying with the regulations above. It will therefore suspend the sale of cryptocurrencies in the UK for as long as necessary to make the required changes.
While it won’t be possible to buy crypto, PayPal says users can hold and sell their crypto during the outage. The company did not say whether users can transfer crypto to other wallets and exchanges, although the feature is only available to users in the United States. The company assures users that their cryptocurrency remains safe and says there will be no fees for holding it.
The FCA also recently introduced new crypto advertising promotion rules that control how cryptocurrencies are promoted or advertised to potential investors, effective October.
Note that PayPal is expected to launch PYUSD in the next few weeks. PayPal USD – its stablecoin will be issued by the Paxos Trust Company, and its value will be pegged to US dollars.
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