PayPal suspends crypto sales in the UK
The aftermath of several crypto firms, including FTX, collapsing last year and causing substantial losses to investors, has continued to echo year-long throughout the crypto landscape, spurring regulatory responses.
Just last week, payment giant PayPal revealed its groundbreaking move to introduce its own stablecoin, making it the first major player in the financial technology arena to embark on such an initiative. Its new PayPal USD (PYUSD) token was planned to roll out first to its US customers holding PayPal Balance accounts in the coming weeks.
Meanwhile, in the UK, the Financial Conduct Authority (FCA) was readying stricter rules targeted at the cryptocurrency market. The new regulation aims to limit how crypto is advertised to British consumers, requiring mandatory risk warnings and the discontinuation of "refer a friend" bonuses.
This regulatory push comes in the context of a global trend where regulators are intensifying efforts to establish comprehensive frameworks for overseeing the cryptocurrency landscape.
In response to the UK FCA's regulations, PayPal announced that it will temporarily halt UK customers' ability to purchase cryptocurrencies through its platform, starting in October. This decision is aimed at ensuring compliance with the new rules governing crypto promotions.
In a correspondence shared with Reuters, PayPal highlighted its commitment to closely collaborating with regulators globally to adhere to the relevant rules and regulations in the markets it operates. The company assured customers that they will retain the ability to hold and sell their cryptocurrency holdings "at any time."
