PayPal to Stop Crypto Purchases in UK Until 2024
Due to the impending implementation of more stringent regulations by the UK's financial regulatory body concerning cryptocurrency advertising, the company has announced a temporary halt.
Payments behemoth PayPal has revealed its decision to temporarily suspend cryptocurrency purchases in the United Kingdom until the early months of 2024. This announcement was made on Wednesday, as the company pointed to the tightening regulations set forth by the nation's financial regulatory authority. The company informed that customers who have previously acquired cryptocurrency assets through their PayPal accounts will have the option to retain them within the platform or sell them as desired. However, commencing from October 1, the functionality for initiating new purchases will be disabled.
"We are enacting this precautionary measure as a response to the new regulations established by the UK's Financial Conduct Authority (FCA), which mandate that cryptocurrency firms incorporate supplementary protocols before customers can engage in cryptocurrency purchases," PayPal conveyed in an official statement.
Anticipated to take effect on September 1, the Financial Conduct Authority (FCA) of Britain is set to introduce more rigorous guidelines specifically targeting cryptocurrencies, reclassifying them as "restricted mass market investments" under these newly established regulations.
"Deeply committed to upholding our compliance responsibilities, PayPal maintains an ongoing close collaboration with regulatory bodies across the globe to ensure our adherence to pertinent rules and regulations in the diverse markets we operate within," PayPal emphasized.
In recent weeks, PayPal has ramped up its involvement in the cryptocurrency domain, with a particular focus on the United States. The most consequential stride taken by the company pertains to its recent introduction of a stablecoin named PayPal USD (PYUSD), an initiative that the payment giant publicly disclosed earlier this month.