PayPal will temporarily halt crypto purchases in the United Kingdom starting from Oct. 1, 2023, expecting to reenable the service in early 2024.
Cryptocurrency-friendly payments platform PayPal is making some crypto adjustments on its platform in the United Kingdom to comply with local financial regulations.
PayPal is temporarily pausing the ability for its U.K. customers to buy cryptocurrencies like Bitcoin (BTC) as it works to comply with new regulations, the firm told Cointelegraph on Aug. 16.
“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,” a spokesperson for PayPal UK noted.
In an email to select U.K. customers, PayPal said that it would temporarily halt cryptocurrency purchases in the U.K. starting from Oct. 1, 2023. “We expect to re-enable crypto purchases in early 2024,” PayPal added.
PayPal said it had decided to take this measure in response to new rules enacted by the U.K. Financial Conduct Authority (FCA) that require crypto firms to adopt some additional steps before clients can buy cryptocurrency.
“While we work to satisfy these new regulations, you won’t be able to buy crypto using PayPal,” the announcement reads.
PayPal will ‘pause’ crypto purchases in UK pic.twitter.com/NPkj7F61cC
PayPal has been emerging as a major cryptocurrency-friendly platform in recent years. One of its latest crypto-related efforts is the launch of its PayPal USD (PYUSD) stablecoin in early August. The firm subsequently introduced the new cryptocurrency hub feature on its interface. PayPal originally debuted cryptocurrency services in the United States in late 2020.
The news amid the U.K. government preparing to fully enforce the “Travel Rule,” major Know-Your-Customer and Anti-Money Laundering regulations developed by the Financial Action Task Force (FATF). Starting from Sept. 1, 2023, all crypto firms registered with the FCA will need to comply with the Travel Rule, following the instructions of the government, which amended the relevant legislation in July 2022.
Last month, the FCA also announced that all crypto asset firms must ensure that their marketing strategies are compliant with financial promotions regime in the U.K. by October 2023.