PayPal to pause crypto sales as it works to comply with new FCA rules.
Crypto sales on its platform will likely be resumed in early 2024.
PayPal is slated to launch its own stablecoin in the coming weeks.
PayPal says its users in the United Kingdom will temporarily lose the ability to buy cryptocurrencies via its platform from October 1st.
Why is PayPal pausing crypto sales?
The Financial Conduct Authority has recently announced new rules that make it mandatory for crypto companies to institute “clear risk warnings” as well as a 24-hour cooling-off period before they enable customers to put their money in crypto assets.
According to PayPal, it is “deeply committed” to complying with the said regulations and will, therefore, suspend crypto sales in U.K. for as long as it takes to make the required changes.
This announcement arrives only a day after the online payments company said Alex Chriss will replace Dan Schulman as its Chief Executive on September 27th. Its shares have lost about 20% month-to-date.
When will PayPal resume crypto sales?
PayPal was not specific in divulging when is it likely to resume crypto sales on its platform. What it told customers in a message today was only that they will be re-enabled in early 2024.
So, it’s fair to assume that the pause will remain in place for at least three months considering it starts on October 1st. During this time, though, users will be able to hold as well as sell their crypto assets on the platform, as per the digital payments giant.
Note that PayPal is slated to launch PYUSD in the coming weeks. PayPal USD – its own stablecoin will be issued by Paxos Trust Company and its value will be pegged to the U.S. dollar (find out more).