PayPal Halts UK Crypto Purchases Amid Regulatory Changes

A platform for cryptocurrency-friendly payments PayPal is modifying its platform in the United Kingdom (UK) to comply with local financial regulations.

PayPal is temporarily suspending the ability for its U.K. customers to purchase cryptocurrencies such as Bitcoin, the company said on August 16.

“PayPal customers who currently hold cryptocurrency can store it on our platform for free and sell it at any time,” a PayPal UK spokesperson explained.

In an email to select U.K. customers, PayPal announced that, beginning October 1, 2023, it would temporarily suspend cryptocurrency purchases in the U.K.

“We expect to re-enable crypto purchases in early 2024,” PayPal added. PayPal stated that it made this decision in response to new regulations enacted by the U.K. Financial Conduct Authority (FCA) that require crypto firms to take additional steps before clients can purchase cryptocurrency.

The announcement states, “While we work to comply with these new regulations, you will not be able to purchase cryptocurrencies using PayPal.”

In recent years, PayPal has become a prominent cryptocurrency-friendly platform. One of its most recent crypto-related endeavors was the introduction of its PayPal USD (PYUSD) stablecoin at the beginning of August.

Subsequently, the company added a new cryptocurrency gateway feature to its interface. PayPal’s cryptocurrency services initially debuted in the United States in late 2020.

Since 2020, the FCA has reported that only 13 percent of the total 291 crypto license applicants have registered with the authority.

The FCA announced last month that all crypto asset firms must ensure that their marketing strategies comply with the U.K.’s financial promotion regime by October 2023.