PayPal Halts Crypto Purchases in UK: What Does This Mean for the Future of Crypto?
The company stated that the suspension is due to the UK’s finance regulator’s planned tighter crypto advertising laws, which will take effect on September 1.
PayPal announced Wednesday that it will temporarily halt crypto purchases in the United Kingdom until early 2024, citing tighter requirements imposed by the country’s banking authority.
Customers who previously purchased crypto assets through their PayPal account can keep them or sell them at any moment, according to the business. However, the option to make new purchases will be banned beginning October 1.
“We’re taking this step in response to new rules enacted by the United Kingdom’s Financial Conduct Authority (FCA) that require crypto firms to take additional steps before customers can buy crypto,” PayPal stated in a statement.
On September 1, the Financial Conduct Authority (FCA) of the United Kingdom is scheduled to adopt harsher laws for cryptocurrency, which will be categorised as “restricted mass market investments” under the new rules.
“We remain deeply committed to our compliance obligations, and PayPal consistently works closely with regulators around the world to ensure that we adhere to applicable rules and regulations in the markets in which we operate,” PayPal stated.
PayPal has expanded its crypto footprint in recent weeks, particularly in the United States. The most major development for the corporation is the establishment of a stablecoin, PayPal USD (PYUSD), announced earlier this month by the payments behemoth.