PayPal announced Wednesday that it will be temporarily pausing crypto purchases in the United Kingdom until early 2024, due to stricter rules by the country’s financial regulator, the Financial Conduct Authority (FCA). Customers who have already purchased crypto assets through their PayPal account can keep them on the platform or sell them at any time, however, new purchases will be disabled starting October 1.
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, PayPal said in a statement.
The FCA is expected to introduce stricter rules for crypto, which will be classified as restricted mass market investments under the new rules, on September 1. PayPal stated that they are deeply committed to [their] compliance obligations and that they consistently work closely with regulators around the world to adhere to applicable rules and regulations in the markets in which [they] operate.
Despite the pause in crypto purchases in the UK, PayPal has been expanding its crypto footprint in recent weeks, specifically in the United States. The most significant development for the company is its recent launch of a stablecoin, PayPal USD (PYUSD), which the payments giant announced earlier this month.