The leader in online payments worldwide, PayPal, has temporarily suspended its bitcoin buying services in the UK. This action is in accordance with the most recent guidelines for the marketing of crypto assets issued by the UK Financial Conduct Authority (FCA).
PayPal warned its users in a message on Tuesday that bitcoin transactions would cease as of October 1, 2023, with plans to return in early 2024.
“We’re altering our services to comply with these demands due to recent directions from the UK Financial Conduct Authority (FCA) demanding enhanced procedures for crypto buys. PayPal purchases of cryptocurrencies will consequently be temporarily unavailable.”
Keeping the New Directives of the FCA
Stringent requirements have been established for marketing crypto assets to the British public by the UK’s financial regulatory body, the FCA. Their goal is to ensure that buyers of cryptocurrencies are aware of any potential risks. As a result, FCA regulation is being applied to crypto promotional activities, including advertising campaigns.
A large increase in UK crypto ownership was recently found by the FCA, with numbers more than doubling between 2021 and 2022.
The FCA stressed that these standards require cryptocurrency businesses to make sure that their clients have the necessary knowledge and understanding before making crypto investments.
PayPal stated in a statement that it is steadfastly committed to regulatory compliance and that “our global operations consistently align with jurisdiction-specific financial directives, ensuring we remain in harmony with regulatory landscapes.”
Although purchases of bitcoin are temporarily suspended, PayPal guarantees that consumers’ current crypto holdings are safe. Customers will still be able to control and liquidate their cryptocurrency holdings.
This development follows PayPal’s recent launch of a section specifically for cryptocurrencies, enabling customers to handle numerous virtual currencies and streamline bitcoin transactions. Additionally, last month the payment behemoth released PayPal USD (PYUSD), a stablecoin pegged to the US dollar and produced by Paxos Trust Co. PayPal continues to be proactive in its cryptocurrency endeavors despite increased regulatory attention from US regulatory organizations on the crypto sector.