PayPal halting UK cryptocurrency purchases

With an anticipated return in early 2024, PayPal (NASDAQ: PYPL) has announced that it will temporarily halt crypto purchasing services in the UK starting on October 1, 2023.

The move was made in response to new regulatory demands made by the UK Financial Conduct Authority (FCA), as explained in an email sent to a limited group of users on August 14.

Users can, however, still hold and sell their bitcoins at this time, even if purchasing cryptocurrency will not be possible. PayPal has not specified if customers can move cryptocurrency between wallets or exchanges, a function that now appears to be available only to US consumers.

Complying with the new UK regulations

In a notice sent by PayPal, the payment services provider said that it decided to stop its buying services as it works to adhere to new rules put forward by the UK FCA. Though specifics of the restrictions have not been made public, the corporation will be obliged to “implement additional steps before customers can purchase crypto.”

“Pausing” pic.twitter.com/ink9kIHAnn

— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) August 15, 2023

In September 2023, the UK will begin enforcing a Crypto Travel Rule that requires cryptocurrency companies to compile data on transaction parties. In addition, new advertising and promotion regulations for cryptocurrencies will go into effect in October. However, neither regulation appears to be in line with PayPal’s claimed justifications for the service modification.