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<p class="is-style-lead">PayPal has announced that it will temporarily pause crypto buying services in the UK starting from Oct. 1, 2023, with a planned resumption in early 2024.</p> 
<p>The latest decision, outlined in an email to select users on Aug. 14, comes in response to new regulatory requirements by the UK Financial Conduct Authority (FCA).</p> 
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   <p lang="en" dir="ltr">Calling up the Fed to get permission. <a href="https://t.co/fqaC1Dv4rE" target="_blank" rel="noopener noreferrer nofollow">https://t.co/fqaC1Dv4rE</a> <a href="https://t.co/IiMNIeXxYv" target="_blank" rel="noopener noreferrer nofollow">https://t.co/IiMNIeXxYv</a></p>— Simon Dixon (@SimonDixonTwitt) <a href="https://twitter.com/SimonDixonTwitt/status/1691560196621951112?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 15, 2023</a> 
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<p>While crypto buying will be unavailable during this period, users can continue to hold and sell their cryptocurrencies. However, PayPal did not clarify whether users can transfer cryptocurrencies to other wallets or exchanges, a feature that currently seems limited to US users.</p> 
<h2 class="wp-block-heading" id="strong-compliance-with-new-uk-rules-strong"><strong>Compliance with new UK rules</strong></h2> 
<p>The decision to pause the buying services comes as PayPal aims to comply with new regulations introduced by the UK FCA. The company will be required to “implement additional steps before customers can purchase crypto,” though specific details of the rules have not been revealed.</p> 
<p>The UK is <a href="https://crypto.news/crypto-travel-rule-fails-to-meet-fatf-standards-says-report/" rel="noopener noreferrer nofollow">set to enforce a Crypto Travel Rule </a>in September 2023, which mandates crypto companies to collect information about transaction parties. Moreover, new promotional rules concerning crypto promotion and advertising will be enacted in October. Neither regulation, however, seems to directly align with PayPal’s stated reasons for the service change.</p> 
<p> You might also like: <a href="https://crypto.news/crypto-influencers-firms-must-add-disclaimers-to-meme-promos-fca-says/" rel="noopener noreferrer nofollow"> Crypto influencers, firms must add disclaimers to meme promos, FCA says </a> </p> 
<h2 class="wp-block-heading" id="paypal-expands-crypto-offerings-in-us">PayPal expands crypto offerings in US</h2> 
<p>The suspension of UK services is a noteworthy move for PayPal, especially as the company is currently expanding its crypto offerings in the US.</p> 
<p>As reported by crypto.news, the company<a href="https://crypto.news/paypal-ventures-into-stablecoins-with-launch-of-pyusd/" rel="noopener noreferrer nofollow"> unveiled a US dollar-pegged stablecoin</a> on Aug. 7, PayPal USD (PYUSD). Issued by Paxos Trust Company and regulated by the New York State Department of Financial Services, PYUSD is described as a bridge between fiat currencies and the digital asset space.</p> 
<p>The stablecoin, valued at one USD per unit, aims to enhance digital asset payments’ compatibility with exchanges, wallets, and Web 3 applications. Short-term US Treasuries and similar cash equivalents reportedly back it.</p> 
<p> Read more: <a href="https://crypto.news/us-official-calls-for-stablecoin-law-amid-paypals-pyusd-launch/" rel="noopener noreferrer nofollow"> US official calls for stablecoin law amid PayPal’s PYUSD launch </a> </p>

PayPal announces halt on UK crypto purchases

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