PayPal to suspend crypto services for UK customers

Two months after, crypto services by PayPal will not remain available for UK-based customers.

PayPal is a popular global digital banking wallet service, also provides crypto trading services for PayPal users since Oct 2020. Just a week ago, this giant payment & bank app launched its native stablecoin (PYUSD). Crypto experts believe that PYUSD will bring a better level of confidence among crypto traders to use stablecoin across Defi protocols..

On 14 Aug 2023, PayPal informed some selected customers that it will suspend its crypto services temporarily for the UK based customers. 

As per emailed information, PayPal’s crypto trade services will remain unavailable from 1 Oct of this year to an unknown time. Some reports claimed that the PayPal firm has plans to keep crypto services unavailable till Q1 2024.

PayPal also confirmed that its customers’ crypto funds will remain safe. 

PayPal decided to take this decision because of the new rules from the U.K. Financial Conduct Authority (FCA). Under the new laws, PayPal firm required to follow some other additional steps before serving crypto services to customers.

Tge PayPal team failed to mention any particular rule, which is against the company’s current crypto service. As per reports, the UK will implement its new financial rules in September of this year. 

Under the “Crypto Travel Rule,” all the crypto companies are required to collect information related to crypto transactions (sender & receivers).

Recently the UK’s authorities introduced a new barrier to the crypto sector, to prohibit misleading & unethical crypto advertisements.

All such regulatory changes for the crypto sector in the UK’s jurisdiction are showing that UK authorities are serious about this innovative sector and they don’t want to see any kind of unethical or illegal activity in this sector.

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