Latest News

PayPal pauses crypto purchasing in UK to comply with FCA rules

By Jonathan Easton

Leading payments processor PayPal has told its UK customers that it will suspend cryptocurrency purchases through its platform from 1 October.

The suspension, which is expected to be lifted in “early 2024, comes as PayPayl looks to comply with new rules and regulations surrounding cryptocurrencies and their promotion.

The UK’s Financial Conduct Authority (FCA) is set to introduce tough curbs on the advertising of cryptocurrencies to British consumers on 8 October. The watchdog will force crypto firms to carry warnings about the risk of investing in tokens like Bitcoin and Ethereum, while also introducing a mandatory 24 hour ‘cooling off’ period for first-time crypto investors.

Another major part of the new regulation will outlaw ‘refer a friend’ bonuses which have been likened to pyramid or multi-level marketing schemes. Such incentives can be utilised by businesses to turn their customers into recruiters.

PayPal, which first introduced crypto buying and selling in the UK in 2021, emailed customers this week stating: "PayPal consistently works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.”

Account holders will be able to hold and sell crypto “at any time” but purchases will be suspended until early next year.

Despite this news, all signs point to PayPal doubling down on crypto. The company earlier this week announced the appointment of Alex Chriss as its new chief executive from 27 September, replacing Dan Schulman who has served in the role since 2014. Chriss currently serves as senior vice president and chief product officer of small businesses for Intuit. A continued push into crypto, including a new Cryptocurrencies Hub where users can manage crypto assets, is thought to be high on the agenda for the incoming chief exec.

    Share Story:

Recent Stories

Bank of Ireland resolves glitch that let customers withdraw funds they didn't have

Mastercard launches small business digitisation programme in India

PayPal pauses crypto purchasing in UK to comply with FCA rules


The human firewall: Activating employees to safeguard financial data
As financial services increasingly embrace SaaS and cloud-based technologies, they face emerging threats to safeguard sensitive customer data. While comprehensive IT security measures are essential, the active involvement of employees across organisations is pivotal in ensuring the protection of sensitive data.

BANNER

BANNER

Building a secure financial future for instant payments: The convergence of ISO 20022 and fraud detection
The financial landscape is rapidly evolving its approach to real-time transactions under the ISO 20022 standard, and financial institutions must take note. With examples such as the accelerated adoption of SEPA Instant Credit Transfers in Europe and proposed New Payment Architecture (NPA) programme in the UK, the need for swift and effective fraud detection is more crucial than ever.

Data Streaming and Consumer Duty: Transforming customer experience in banking
Introduced at the end of July, the Consumer Duty is a game-changing new set of rules and guidance for financial services institutions in the UK, and companies must look to modernise their systems in adherence with it in mind to create the best customer experience possible.

From insight to action: Empowering financial institutions through advanced technology and collaborative information sharing
The use of Information sharing in enhancing financial crime prevention has been universally agreed as being beneficial. However no-one has been able to agree on how information can be shared safely without breaching data protection laws or having the right systems to facilitate this, Information sharing has re-emerged as a major consideration for financial institutions (FIs) ahead of the Economic Crime and Corporate Transparency Bill being made into law in the UK.

© 2019 Perspective Publishing     Privacy & Cookies