PayPal to suspend UK crypto sales until 2024

PayPal, a major player in the payments industry, announced that it will halt the option for UK customers to purchase cryptocurrencies through its platform starting from October this year. This move is in response to the implementation of new regulations aimed at controlling crypto promotions within the UK market. The country’s financial regulator intends to introduce stricter guidelines to govern how cryptocurrency is advertised to British consumers. These regulations include compelling crypto firms to display risk warnings and eliminating incentives such as “refer a friend” bonuses.

In an email communicated to its customers on Tuesday, PayPal stated that it will temporarily suspend the ability to buy crypto on its platform as of October 1, in order to ensure compliance with the new rules. The regulations themselves are set to take effect on October 8. The company anticipates recommencing this service in early 2024.

PayPal emphasized its ongoing cooperation with global regulators to adhere to relevant rules and standards in the markets it operates in. The email, a copy of which was shared with Reuters, highlighted that customers will still have the capacity to hold and sell their existing cryptocurrencies whenever they choose.

News of this development was initially reported by various crypto-focused media outlets, including CoinJournal. PayPal initially introduced cryptocurrency buying and selling functionality in the UK in 2021.

Across the globe, regulatory authorities are increasingly focusing on the regulation of crypto assets, prompted in part by the collapse of numerous crypto companies, such as FTX, which resulted in substantial losses for amateur investors. After experiencing a significant price decline last year, the leading cryptocurrency, Bitcoin, has gradually rebounded, recording a roughly 76% increase in value so far this year. Nonetheless, its current price remains below half of its all-time high reached in November 2021.

In a recent announcement, PayPal’s shares received a boost following the launch of a U.S. dollar-denominated stablecoin named PayPal USD. Stablecoins are a form of cryptocurrency designed to maintain a consistent value by being linked to a stable underlying asset.