After major moves in the crypto landscape, PayPal is now restricting crypto purchases for its customers in the UK.
PayPal, a leading payment provider known for its positive stance towards cryptocurrencies, is readjusting its crypto-related offerings in the United Kingdom.
According to the August 16th announcement, PayPal will temporarily halt Bitcoin (BTC) and other cryptocurrency purchases for its UK user base, ensuring they align with the evolving regulatory framework.
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A representative from PayPal UK clarified:
PayPal customers who currently hold crypto can keep it on our platform at no charge and are also able to sell their currency at any time.
Furthermore, in a direct email communication to its UK users, PayPal elaborated on the upcoming changes, stating that the suspension will commence on October 1st, 2023. However, the company remains optimistic about resuming its crypto-related services, with an expected re-introduction in early 2024.
This strategic decision by PayPal stems from the UK Financial Conduct Authority's (FCA) revised guidelines, necessitating additional prerequisites for crypto entities before facilitating cryptocurrency purchases for their clients. Elaborating on this interim change, PayPal's announcement highlighted:
While we work to satisfy these new regulations, you won't be able to buy crypto using PayPal.
Over the years, PayPal has increasingly embraced the world of digital assets. Most recently, the company introduced the PayPal USD (PYUSD) stablecoin, followed by the inauguration of a dedicated cryptocurrency hub on its user platform.
The move from PayPal arrives in the wake of the FCA's disclosure that a mere 13% of the 291 crypto license applications have gained approval since 2020. The regulatory body also emphasized in a recent announcement that by October 2023, all crypto-based businesses should align their promotional activities with the UK's financial promotions regime.
While temporary, PayPal's decision underscores the dynamic landscape of crypto regulations and serves as a reminder of the importance of adapting to the ever-evolving rules of the digital asset world.
