In a surprising move, global payments giant PayPal has announced its decision to temporarily halt crypto purchases in the United Kingdom. This pause, set to last until early 2024, responds to the UK’s financial regulator’s upcoming stricter cryptocurrency rules.
Starting October 1, UK-based customers won’t be able to make new crypto purchases via PayPal. However, those who’ve previously bought crypto assets through the platform can still retain or sell them. The UK Financial Conduct Authority (FCA) is the driving force behind this decision.
The FCA is gearing up to introduce stringent rules for crypto, categorizing them as “restricted mass market investments” from September 1.
PayPal’s official statement sheds more light on this move: “We’re taking this measure in response to new rules enacted by the U.K. Financial Conduct Authority (FCA) that require crypto firms to implement additional steps before customers can purchase crypto.” This indicates that the company is prioritizing regulatory compliance over the crypto market’s potential in the UK, at least for now.
It’s worth noting that while PayPal is treading cautiously in the UK, its crypto endeavours are expanding, especially in the US. A significant highlight is its recent stablecoin launch, PayPal USD (PYUSD).
While the UK’s crypto enthusiasts might be disappointed with this development, it underscores the ever-evolving relationship between crypto platforms and regulatory bodies. As the crypto landscape matures, such decisions become more common, emphasising the need for clear regulatory frameworks.
