London Reuters: As it strives to comply with new regulations on crypto marketing, payments giant PayPal will stop enabling UK consumers to buy cryptocurrency over its platform as of October.
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 include warnings about the danger and eliminate “refer a friend” bonuses.
As it works to comply with 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 purchase cryptocurrency on its platform starting on October 1. According to the statement, “early 2024” is when it plans to resume.
PayPal informed consumers in an email that it shared with Reuters 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 may retain and sell their cryptocurrency “at any time.”
Earlier, crypto media sources like CoinJournal broke the story.
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 control 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 much 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.