PayPal will “temporarily pause” the ability for customers in the United Kingdom to buy crypto on its platform starting Oct. 1 as the payments giant works to ensure it follows the new regulations set out by the UK.
PayPal said that the pause is due to the company working to “satisfy new regulatory requirements. PayPal customers who currently hold crypto can keep it on our platform at no charge and are also able to sell their currency at any time.”
“We remain deeply committed to our compliance obligations and PayPal works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.”
The company, according to a Reuters report, confirmed that it will aim to offer the services again in early 2024.
The halt comes days before the Financial Conduct Authority’s new legislation is enacted on Oct. 8.
The new rules will allow investors to back out of potential investments in crypto within a timeframe, while also ensuring that there are clear risk warnings. Advertisements will also face a crackdown to ensure they aren’t misleading.
“It is up to people to decide whether they buy crypto, but research shows many regret making a hasty decision,” Sheldon Mills, the FCA’s executive director of consumers and competition, said in a June statement.
The email announcing the change was sent to some UK customers and assured them that their “crypto remains safe” according to screenshots posted online.
PayPal did not immediately respond to a request for comment. The news was first reported by CoinJournal.
PayPal, despite hitting pause on its UK crypto offerings, has been making progress in its crypto offerings in the US. Last week, it announced the launch of a PayPal stablecoin, issued by Paxos Trust Co.
Hardware wallet company Ledger announced early Wednesday that it had teamed up with PayPal, allowing customers to use their PayPal accounts to buy certain cryptos on Ledger Live.
James Cirrone contributed reporting.
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Source: https://blockworks.co/news/paypal-halts-uk-crypto