PayPal Suspends Crypto Purchases in UK to Adopt New Regulations
PayPal has announced that it will resume crypto purchases in UK in early 2024 after it suspends cryptocurrency purchases temporarily following tightening regulations by the government.
The company has announced to suspension of crypto purchases in the United Kingdom after the U.K. Financial Conduct Authority (FCA) introduced new regulations to safeguard customers from volatility in prices and stability in the financial market.
Now, its customers will not be able to make crypto purchases in the UK from October 1, 2023.
UK financial regulator has called for implementing some additional measures before buying cryptocurrencies by the customers.
The company has suspended crypto purchases to comply with these new regulators introduced by the UK government.How to Use Venmo’s Crypto Transfer Feature| Here is How!
However, the customers have been allowed to retain the currency at the Paypal platform without any charges during the suspension period.
Moreover, they can also sell those currencies at any time whenever they want during the suspension period.
During the suspension period, the company will make efforts to adopt the new regulations.
The company had recently made efforts to launch the PayPal USD (PYUSD) stablecoin.
Paypal had also introduced a new cryptocurrency hub feature for the ease of its customers.
It launched cryptocurrency services in the United States back in 2020 and these services were later extended to the United Kingdom (UK).
Now, its customers will have to wait till early 2024 to resume purchases after the company adjusts itself to the new regulations.
In August 2021, Pappal had announced to launch crypto services in the UK.
Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto, and digital currencies had told CNBC that crypto had been doing good in the US and hoped it would be performed well in the UK.
The company had announced crypto features for its customers that included selling and buying Bitcoin, bitcoin cash, ethereum of Litecoin.
It had facilitated the customers to track prices of crypto in real-time and find out the content for educational purposes on the market.
The Fall of Crypto Firms
Several crypto firms had suffered losses last year due to amateur investors.
FTX was one of the companies that had also collapsed which forced the regulator to introduce new regulations to stop such incidents in the future.
The financial regulator FCA had introduced tough rules designed for marketing that would ensure the understanding of risks involved in it for those who buy crypto.
The new rules also included banning on “refer a friend” to make bonuses. It means that will be no referral program for crypto selling and buying in the UK under the new rule.
