PayPal to suspend crypto sales in the UK
Digital payment giant PayPal plans to suspend cryptocurrency investing for people based in the UK in October.
PayPal is planning to cease UK cryptocurrency sales as a result of tighter regulations being introduced in October 2023.
PayPal has allowed customers to trade crypto since August 2021 in the UK as part of a wider offering in virtual currencies. Currently, “Crypto with PayPal” allows you to buy, hold and sell 4 cryptocurrencies in the UK: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Why is PayPal stopping crypto investing?
The collapse of several crypto firms last year has spurred regulators to look again at cryptocurrency controls.
In the UK, the Financial Conduct Authority (FCA) is looking to tighten up regulations on the marketing of cryptoassets, with new rules coming into force on October 8. This includes new risk warnings, scrapping “refer-a-friend” bonuses, and introducing a cooling-off period for new investors.
People hoping to buy cryptocurrencies will also now have to demonstrate sufficient knowledge and experience of investing in crypto before making a purchase.
As a result, PayPal will no longer allow UK customers to buy cryptocurrencies to ensure it complies with the new rules, from October 1. PayPal expects to re-start crypto sales in “early 2024”.
When will these PayPal crypto changes take place?
PayPal has announced it will stop facilitating cryptocurrency purchases from October 1, 2023. This is so that there’ll be no potential issues when the new FCA rules come into force on October 8, 2023.
Existing owners and “hodlers” will still be able to hold and sell their crypto at any time.
If you want to explore some other places where you can still trade crypto, check out these exchanges.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
