PayPal imposes UK crypto pause

Online payments firm PayPal will prevent its UK customers from buying cryptocurrency through its platform from October, as it works through tough new rules being introduced by Britain’s financial regulator.

From October 8, the Financial Conduct Authority will require buyers to demonstrate “the appropriate knowledge and experience” to invest in crypto and firms selling the currencies will need to make the risks clear. Refer-a-friend bonuses will also be banned.

PayPal has let US customers trade crypto since October 2020 and in the UK since August 2021. The firm has four currencies for sale on its platform: bitcoin, ethereum, litecoin and bitcoin cash (a version of bitcoin designed to be used as an everyday payment system).

While all these offerings will be paused for UK customers PayPal said that it expects to restart crypto purchase in “early 2024”. The payments giant added that its customers can still sell their crypto “at any time”.

Regulators around the world are increasingly seeking to regulate crypto assets, after the collapse of several crypto firms including FTX last year left amateur investors with large losses.