PayPal temporarily halts cryptocurrency purchases for UK customers
PayPal has announced that it will temporarily pause the ability for UK customers to buy cryptocurrencies on its platform starting 1 October 2023.
PayPal is working to comply with new UK regulations coming into effect on 8 October 2023. Britain’s financial regulator, the Financial Conduct Authority (FCA), is imposing tougher rules on cryptocurrency products and services marketing and advertising. Therefore, PayPal has announced that it will temporarily pause the ability for UK customers to buy cryptocurrencies.
PayPal launched cryptocurrency trading in the UK in 2021 and expects to restart cryptocurrency purchases early in 2024. In the meantime, its UK customers will still be able to hold or sell cryptocurrency during this temporary halt on crypto purchases.
Why does it matter?
PayPal is a global player in the fin-tech industry, and its decision to temporarily pause crypto purchases for its UK consumers may impact the global cryptocurrency market. Around the world, governments are regulating crypto assets to ensure consumer protection, prevent money laundering, and address potential risks, such as the FTX collapsing last year. The company’s decision reflects the urgent need to adapt to an evolving regulatory landscape, which could signal significant change for the industry.