PayPal is “pausing temporarily” cryptocurrency purchases for UK customers. The company confirmed that UK users will not be able to buy cryptocurrency on the platform Decode today.
“We are pausing the ability for UK customers to purchase cryptocurrency through PayPal while we work to comply with new regulatory requirements,” said a representative.
A PayPal spokesperson didn’t say why the platform was pausing purchases, but added that users who “currently hold cryptocurrency can hold it on our platform for free and can also sell their currency at any time.”
Screenshots of an email allegedly sent to British customers circulated on Twitter yesterday, suggesting that PayPal will “pause” cryptocurrency purchases in October. PayPal has not confirmed it Decode If the screenshots are legit.
UK customers can only buy Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
British regulators are getting tougher on cryptocurrencies: last month, the Financial Conduct Authority said that companies promoting cryptocurrencies must comply with the existing financial promotion regime by October 8.
The payment platform first launched the feature in 2020 for US customers. Initially, customers were unable to transfer coins from their PayPal accounts; The company was responsible for its maintenance on behalf of its users.
In 2021, Paypal once again offered an option for UK customers to buy, sell and hold their cryptocurrency. However, last year, the platform finally allowed its users to transfer their cryptocurrencies to external wallets and devices instead of keeping them in the company’s wallet.
Last week, PayPal announced the launch of a native dollar-pegged stablecoin backed by cash equivalents and short-term Treasury notes. It will run on the Ethereum blockchain and will be issued by Paxos Trust Co.
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