PayPal, the global online payments giant, has announced a temporary suspension of cryptocurrency sales in the United Kingdom. The decision comes in response to new regulations introduced by the Financial Conduct Authority (FCA). These regulations mandate a 24-hour cooling-off period and require “clear risk warnings” to be provided to users before they can invest in crypto assets.
PayPal has expressed its deep commitment to adhering to these new rules. Consequently, the company has decided to halt cryptocurrency sales in the UK while it works to implement the necessary changes. The suspension will begin on October 1st and last for an unspecified period. However, PayPal has indicated that it plans to re-enable the feature in early 2024.
During the suspension, customers in the UK will still be able to hold and sell their existing crypto assets on the PayPal platform. However, they will not be able to make new purchases. The company still needs to provide a specific date for the resumption of crypto sales, leaving customers to wait for further updates.
Leadership changes and stock performance
In addition to suspending crypto sales, PayPal has also announced a change in leadership. Alex Chriss will succeed Dan Schulman as CEO of the company. This announcement came a day before the suspension news, on September 26. Significantly, PayPal’s stock price has declined nearly 20% month-to-date.
Moreover, PayPal has revealed plans to introduce its stablecoin, PYUSD, in the near future. The stablecoin, issued by Paxos Trust Company, will be valued at 1 USD. The introduction of PYUSD is part of PayPal’s broader strategy to expand its presence in the cryptocurrency space.
