LONDON (Reuters) – Payments giant PayPal is set to halt cryptocurrency purchases for its UK customers starting October, as it strives to comply with new regulations on crypto promotions. The Financial Conduct Authority (FCA) in Britain is implementing stricter rules to restrict the advertising of crypto to British consumers, including obliging crypto firms to display risk warnings and discontinuing “refer a friend” bonuses.
In an email sent to its clients on Tuesday, PayPal stated that it will “temporarily pause” the option for customers to purchase crypto on its platform as of October 1 in order to meet the requirements of the new regulations, which will go into effect on October 8. It expects to re-enable the feature in “early 2024”. “PayPal consistently works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate,” the company said in the email shared with Reuters. It reassured customers that they can still hold and sell their existing cryptocurrencies “at any time.”
Crypto media outlets such as CoinJournal first reported this news.
PayPal initially introduced the ability to buy and sell cryptocurrencies in the UK in 2021.
Regulators worldwide are increasingly seeking to regulate crypto assets, spurred by the demise of several crypto firms, including FTX, which resulted in considerable losses among novice investors.
After experiencing a significant decline in token prices last year, the value of the leading cryptocurrency, bitcoin, has slowly recovered and is up approximately 76% so far this year. However, it remains less than half of its all-time high reached in November 2021.
Earlier this month, PayPal’s shares received a boost when the company announced the launch of a U.S. dollar stablecoin, a type of cryptocurrency designed to maintain a stable price by being pegged to a stable asset.
(Reporting by Elizabeth Howcroft; Editing by Bernadette Baum)
Credit: The Star : Tech Feed
