• PayPal is temporarily suspending cryptocurrency purchases on its UK platform from October 1st, 2023 in order to comply with new regulations set by the Financial Conduct Authority (FCA).
• Existing customers will be able to keep their digital assets within the platform without incurring any charges and can execute sales of their cryptocurrencies at their convenience.
• The suspension is part of a larger effort by PayPal to align with “Travel Rule” regulations which require stringent KYC and AML measures.
PayPal Temporarily Suspends Cryptocurrency Purchases in UK
PayPal has announced that it will temporarily suspend cryptocurrency purchases in the United Kingdom from October 1st, 2023, as part of an effort to align with new regulations set by the Financial Conduct Authority (FCA). Existing customers will be able to keep their digital assets within the platform without incurring any charges and can execute sales of their cryptocurrencies at their convenience.
Reason for Suspension
The suspension is part of a larger effort by PayPal to comply with “Travel Rule” regulations, developed by the Financial Action Task Force (FATF), which encompass stringent Know-Your-Customer (KYC) and Anti-Money Laundering (AML) measures. As of September 1st, 2023 all cryptocurrency firms registered under the FCA must adhere to these stipulations. The government amended relevant legislation in July 2022 mandating this compliance.
Recent Ventures into Cryptocurrency Realm
PayPal’s emergence as a cryptocurrency-friendly platform has been noticeable over recent years; one of its recent ventures was the introduction of the PayPal USD (PYUSD) stablecoin in early August. Additionally, they unveiled a new cryptocurrency hub feature on its interface indicating its commitment to providing diversified services.
Reaction to Regulations
The temporary suspension demonstrates PayPal’s proactive approach towards compliance with regulatory changes – indicating that they take customer security seriously. This decision follows email notifications sent out to select customers informing them about this change.
Overall, this move is indicative that PayPal are taking initiative when it comes to complying with relevant financial regulations surrounding cryptocurrency activities in order to ensure customer protection and safety standards are met.