- PayPal pauses cryptocurrency sales to comply with new FCA regulations.
- Cryptocurrency sales on the platform are likely to resume in early 2024.
- PayPal plans to launch its own stablecoin in the coming weeks.
PayPal says UK users will temporarily lose the ability to purchase cryptocurrency through the PayPal platform from October 1.castle.
Why is PayPal pausing cryptocurrency sales?
The Financial Conduct Authority recently announced new rules mandating cryptocurrency companies to introduce “clear risk warnings” and a 24-hour cooling-off period before allowing customers to invest money in cryptocurrency assets.
According to PayPal, it is “deeply committed” to complying with the regulations and will therefore suspend cryptocurrency sales in the UK for as long as it takes to make the necessary changes.
The announcement comes a day after the online payments company announced that Alex Chriss will replace Dan Schulman as CEO on September 27.Day. The stock has lost about 20% year to date.
When will PayPal resume selling cryptocurrency?
PayPal did not specify when it would likely resume selling cryptocurrency on its platform. All they told customers in today’s message was that it would be reactivated in early 2024.
So, considering it starts on October 1, it’s reasonable to assume the pause will remain in place for at least three months.castle. However, during this period, users will be able to hold and sell cryptocurrency assets on the platform, according to the digital payments giant.
PayPal plans to launch PYUSD in the coming weeks. PayPal USD – its own stablecoin is issued by Paxos Trust Company and its value is pegged to the US dollar (learn more).