PayPal Temporarily Suspends Crypto Purchases for U.K. Users
PayPal has announced that it will temporarily suspend crypto purchases on its platform for its U.K. based users starting in October. This decision is in response to evolving regulatory guidelines provided by the Financial Conduct Authority (FCA), Britain’s chief market regulator. The suspension is expected to last until early 2024, but users can still keep their crypto on the platform at no charge and sell it whenever they want.
Key Points:
- The suspension of crypto purchases on PayPal’s platform for U.K. users will start on October 1 and last until early 2024.
- PayPal enabled crypto services for U.K. customers in September 2021, following its initial launch in the United States in October 2020.
- The supported assets on PayPal’s platform are limited to Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
- The FCA now requires crypto firms to implement additional steps before customers can purchase crypto, and PayPal is working to stay compliant with these regulations.
- The U.K. has been praised for its regulatory framework and support for the crypto industry, with recent legislation establishing clear guidelines for crypto and stablecoin businesses.
PayPal’s Stablecoin Startup
In addition to the temporary suspension of crypto purchases, PayPal has announced its plan to launch its own stablecoin called PYUSD. This stablecoin will be pegged to the U.S. dollar and based on the Ethereum blockchain. It will be backed by cash, U.S. T-bills, and other cash equivalents. PayPal aims to popularize PYUSD for low-cost transfers between users and merchants worldwide. Following this announcement, PayPal CEO Dan Schulman revealed that he will step down from his position in late September.
Hot Take:
PayPal’s decision to temporarily suspend crypto purchases in the U.K. reflects the company’s commitment to comply with evolving regulatory guidelines. While this may inconvenience users, the move demonstrates PayPal’s dedication to maintaining a compliant and secure platform. Additionally, PayPal’s entry into the stablecoin market with PYUSD shows its ambition to expand its presence in the crypto industry and provide innovative solutions for global transactions.
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