PayPal confirmed this week that it is temporarily stopping cryptocurrency purchases for customers in the United Kingdom. The halt on buying crypto will take effect in October as PayPal works to comply with new regulatory requirements in the UK.
“We are temporarily pausing the ability for UK customers to buy crypto through PayPal as we work to satisfy new regulatory requirements,” a spokesperson for the company told reporters.
The pause was revealed in emails sent to PayPal’s UK users stating that crypto buying services would be “temporarily disabled” next month. Screenshots of the emails circulated online, prompting PayPal to acknowledge the change.
The new restrictions apply only to purchasing crypto; PayPal emphasized that existing crypto holders can still keep or sell their holdings within their accounts. However, new buys are prohibited for now.
Industry experts speculate the suspension is related to enhanced regulations for crypto assets issued by the UK’s Financial Conduct Authority (FCA) last month. The FCA mandated stricter standards for any company promoting cryptocurrency products, with an October deadline for compliance.
PayPal first launched cryptocurrency buying for its UK users in 2021, enabling purchases of Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Users have not been able to withdraw crypto off the platform. The company rolled out crypto services in the US a year earlier.
While PayPal slammed the brakes on UK crypto transactions, it continues expanding services elsewhere. This month, PayPal announced plans to issue its own stablecoin backed by US dollars and short-term securities.
For now, UK-based customers will have to look beyond PayPal to purchase Bitcoin or other cryptocurrencies. The company has not indicated when it expects to resume crypto buying in the region once regulatory conditions are met.
