The suspension will take effect on October 1, and is expected to last until early 2024.
After launching its stablecoin last week, PayPal has been faced with battles on different fronts concerning its crypto offerings
The fintech giant will suspend its crypto sales in the United Kingdom in accordance with new rules set out by regulators.
PayPal suspends crypto purchase
PayPal has announced that it will suspend UK crypto purchases from October 2023 to early 2024. The company said this in an email to it’s UK customers.
This new development is in response to the new regulations introduced by the Financial Conduct Authority (FCA). According to the rules, there is a mandatory 24-hour cooling-off period and requirement of “clear risk warnings” to be provided to users before they can invest in crypto assets.
The financial payments company has shown their deep commitment to following these new rules. As a result, the company has decided to halt crypto sales to allow them time to implement the new rules.
During this hiatus, UK customers will still be able to hold and sell their existing crypto assets on the PayPal platform. Though new purchases won’t be allowed.
“We apologize for the inconvenience,” said the company. “We will let you know when we have implemented the required changes to the crypto experience,” the email said.
UK laws seems to show a clear pathway
Compared to the US, UK regulators and policymakers have embraced crypto and are only working on providing a clear pathway to crypto regulations.
In late June, the UK passed a bill that established crypto and stablecoin within the existing regulatory parameters of the FCA control. The FCA has published guidelines that criminalizes several crypto transactions, even saying that crypto memes could amount to criminal offences if they don’t follow existing financial promotion laws.
Just a week ago, the UK Treasury published its report on consultations with stakeholders about the rebalance of authority between the Bank of England and the FCA.
In the US, the story is different. The Congress almost went ballistic on PayPal’s launch of its stablecoin, with both sides of the opposition calling for regulations as urgent as possible.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.