PayPal to pause UK crypto purchases starting in October
PayPal stated in an email to select users on Aug. 14 that it will temporarily pause crypto buying services in the U.K. in the coming months.
That message states that the service will be paused starting on Oct. 1, 2023, and will resume at an unspecified date in early 2024.
Though buying will be unavailable, PayPal said that users will be able to hold and sell their cryptocurrency during the service disruption. The company did not state whether users will be able to transfer cryptocurrency to other wallets and exchanges, though it appears that this feature is only available to users in the U.S. at present.
The company assured users their crypto remains safe and said holding will not incur a charge. It apologized for the inconvenience to customers.
U.K. rules require updated compliance
PayPal said it is pausing crypto purchases due to introducing new rules from the U.K. Financial Conduct Authority (FCA). It said that those rules will require it to “implement additional steps before customers can purchase crypto.”
The company did not specify which rules are concerned. The U.K. will begin to enforce a Crypto Travel Rule in September 2023 that requires crypto companies to collect information about parties involved in transactions, though this rule’s September deadline does not seem to line up with PayPal’s October service change.
The FCA also recently introduced new promotional rules that aim to control how crypto can be promoted or advertised to potential investors. These rules come into effect in October but do not seem to match PayPal’s description of user-focused requirements.
PayPal’s reduced U.K. services are particularly notable due to the fact that the company is expanding its crypto offerings in the United States.
The company said that it would offer its own USD stablecoin on Aug. 7. Later, one PayPal executive suggested that the stablecoin could see extensive use in DeFi. Other reports suggest the company is combining its features into a “Cryptocurrency Hub.”
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