In order to comply with new regulations on crypto advertising, payments giant PayPal will stop letting UK consumers purchase cryptocurrency using its platform as of October.
In order to restrict the way cryptocurrency is sold to British consumers, Britain’s financial authority is expected to enact stricter regulations. These regulations would require crypto businesses to carry warnings about the danger and eliminate “refer a friend” bonuses.
As it tries to meet the new restrictions, which take effect on October 8, PayPal stated in an email to clients on Tuesday that it will “temporarily pause” the ability for consumers to buy cryptocurrency on its platform from October 1. It stated that it planned to restart “early 2024.”
In the email, which it provided with Reuters, PayPal informed consumers that it “consistently works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.”
It stated that clients could retain and sell their cryptocurrency “at any time.”
In the UK, PayPal initially introduced cryptocurrency trading in 2021.
After the failure of numerous cryptocurrency organizations, like FTX last year, which caused significant losses for novice investors, regulators around the world are stepping up their efforts to regulate crypto assets.
The price of the most popular cryptocurrency, bitcoin, has gradually risen after token prices fell sharply last year, rising by over 76% so far this year. Even yet, the price is still considerably lower than the record high set in November 2021.
When PayPal revealed earlier this month that it had developed a U.S. dollar stablecoin, a type of cryptocurrency intended to maintain a consistent price by being tethered to a stable asset, its shares rose.
