Payments giant PayPal will stop allowing UK customers to buy cryptocurrencies through its platform starting in October as it works to comply with new rules regarding cryptocurrency promotions .
The British financial regulator is set to put in place tougher rules to limit how cryptocurrencies are advertised to British consumers, including requiring crypto companies to carry warnings about risks and canceling "refer a friend" bonuses .
PayPal said in an email to customers on Tuesday that PayPal will " pause" the ability for customers to buy cryptocurrency on its platform starting October 1 as it works to meet the new regulations, which will take effect on October 8. It said it expects to start from New in "early 2024 , " according to gadgets360 .
" PayPal continually works closely with regulators around the world to comply with applicable rules and regulations in the markets in which we operate, " he told customers via email, a copy of which it shared with Reuters .
It said customers can hold and sell their cryptocurrencies “at any time,” the news was previously reported by crypto media outlets including CoinJournal .
PayPal will first launch cryptocurrency buying and selling in the UK in 2021 .
Regulators around the world are increasingly seeking to regulate crypto assets, after the collapse of several crypto companies including FTX last year caused massive losses to amateur investors .
After the token's price plummeted last year, the price of the top cryptocurrency bitcoin has gradually recovered, rising around 76 percent so far this year, however, its price is still less than half of the all-time high it reached in November 2021 .
Earlier this month, PayPal shares got a boost when it announced that it had launched a USD stablecoin — a type of cryptocurrency designed to maintain a fixed price by pegging it to a fixed asset .