By 
PayPal is set to temporarily suspend cryptocurrency sales for its customers in the UK, starting from October. This move is aimed at ensuring compliance with the new cryptocurrency promotion regulations introduced by the UK’s financial regulator, according to a report by Reuters on Wednesday (August, 16, 2023).
In response to a recent query, a spokesperson from PayPal explained in an email that the company will be temporarily halting the ability of UK customers to purchase cryptocurrencies through their platform while they work to meet the new regulatory requirements. The spokesperson added, “PayPal customers who currently possess cryptocurrencies can retain them on our platform without incurring any charges and are also free to sell their crypto at any time. We remain fully dedicated to fulfilling our compliance responsibilities, and PayPal maintains close collaboration with regulators across the globe to adhere to the relevant rules and regulations in the markets we serve.”
The UK’s Financial Conduct Authority (FCA) recently implemented regulations aimed at restricting the way cryptocurrencies are advertised to British consumers. These new rules mandate that cryptocurrency firms issue warnings about associated risks and eliminate “refer a friend” incentives.
In response, PayPal intends to suspend the ability of its UK customers to buy cryptocurrencies on its platform from October 1, with plans to resume these services in early 2024, as detailed in an email sent by PayPal to its customers.
PayPal initially introduced the option to buy and sell cryptocurrencies in the UK in 2021. As regulatory bodies around the world increasingly seek to oversee cryptocurrency assets, PayPal’s decision to adhere to the new UK rules underscores the heightened scrutiny and endeavors to safeguard consumers within the cryptocurrency sphere.
The downfall of several cryptocurrency firms, including FTX, in the past year resulted in substantial losses for novice investors, prompting regulatory actions to prevent such incidents from recurring.
The FCA unveiled a set of “stringent rules” for cryptocurrency marketing on June 8, including the prohibition of “refer a friend” incentives. Additionally, companies promoting cryptocurrency assets to UK consumers will be required to institute a “cooling-off” period for new investors, effective from October 8.
Sheldon Mills, the FCA’s Executive Director for Consumers and Competition, noted, “People are free to decide whether to purchase cryptocurrencies or not. Nevertheless, research indicates that many regret hasty decisions. Our measures are aimed at ensuring consumers have a more informed understanding before making such choices.”
Comments