The global online payments company PayPal is planning to
pause cryptocurrency sales for a minimum of
three months starting October 1 for users in the UK. This unprecedented move is a response to the
new regulations introduced by the UK’s watchdog.
In a message to its
users cited by Forbes, PayPal announced its compliance-driven decision,
indicating that customers can still hold and sell their existing crypto assets
while the platform adjusts to the evolving regulatory landscape.
PayPal’s decision
coincided with the upcoming implementation of the Financial
Conduct Authority’s (FCA)
measures, including risk warnings and cooling-off periods for new
cryptocurrency users. Set to be enforced in October, the FCA’s package of
measures requires clearer disclosure of risk for cryptocurrency companies.
Additionally, the measures introduce a 24-hour grace period for customers to
reconsider their investment decisions.
PayPal’s response is
part of a growing trend of financial institutions in the UK aligning with
regulatory demands in the cryptocurrency space, Forbes reported. Major lenders
like HSBC, NatWest, and First Direct have already imposed a daily limit on
cryptocurrency transactions.
PayPal Enters Stablecoin
Space
However, despite the
pause in crypto sales, PayPal continues to expand its products and services.
Recently, Finance
Magnates reported that
the company had unveiled
its own US dollar-legged stablecoin,
PayPal USD (PYUSD).
In a statement, the
online payments giant stated that PYUSD represents an important bridge between
the fiat currencies and the digital asset space. This move reportedly aims to
enhance digital asset payments and their compatibility with popular exchanges, wallets,
and Web 3 applications. Each unit of PYUSD has a value equivalent to one USD.
PayPal
USD is issued by Paxos Trust Company, a licensed limited-purpose trust company
subject to regulatory oversight by the New York State Department of Financial
Services. Additionally, the stablecoin is reportedly backed by short-term US
Treasuries and similar cash equivalents.
The global online payments company PayPal is planning to
pause cryptocurrency sales for a minimum of
three months starting October 1 for users in the UK. This unprecedented move is a response to the
new regulations introduced by the…
