PayPal has officially suspended its cryptocurrency services globally, including in the UK, with no availability expected until at least 2025. This strategic pause has left many users searching for reliable alternatives to buy, sell, and manage digital assets. If you're wondering whether PayPal crypto UK services are still accessible—the answer is no.
However, this temporary setback opens the door to explore more robust, feature-rich platforms that cater specifically to cryptocurrency investors and traders. In this guide, we’ll clarify why PayPal made this move and highlight the best crypto alternatives in the UK for 2025 and beyond.
Why PayPal Crypto Services Are Suspended in the UK
Starting in 2025, PayPal will not support any cryptocurrency transactions for UK users. The suspension is part of a broader global pause driven by increasing regulatory scrutiny, particularly from financial authorities like the UK’s Financial Conduct Authority (FCA).
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A new promotion regime will take effect in the UK from October 8th, introducing strict rules around how crypto products can be advertised and marketed. The FCA has issued final warnings to firms, emphasizing that non-compliance could lead to legal penalties. In response, PayPal chose to suspend its crypto offerings temporarily to ensure full regulatory alignment and enhance its platform infrastructure.
This means:
- No buying or selling of crypto via PayPal
- No withdrawals of crypto to external wallets
- Limited crypto functionality across all regions
While inconvenient, this pause reflects a growing trend: crypto platforms must prioritize compliance and security in an evolving financial landscape.
Top Alternatives to PayPal for Crypto Transactions in the UK
With PayPal stepping back, UK residents now have a unique opportunity to explore dedicated platforms that offer greater flexibility, lower fees, and advanced features. Here are the most trusted cryptocurrency alternatives available today:
1. eToro – Best for Beginners and Crypto Wallets
eToro stands out as one of the most beginner-friendly platforms in the UK. Regulated by the FCA, it offers a secure environment for new investors to enter the crypto market with confidence.
Key features:
- Over 70+ cryptocurrencies available (including BTC, ETH, XRP, and more)
- Zero commission on stock and ETF trades
- Easy-to-use interface ideal for first-time traders
- Integrated eToro Money crypto wallet for secure asset management
- Social trading tools that allow users to copy expert investors
Unlike PayPal, eToro allows full control over your digital assets, including the ability to withdraw crypto to external wallets—a major advantage for long-term holders.
For those just starting out, eToro combines simplicity with strong security, making it a top choice among UK crypto beginners.
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2. Coinbase – Best for Broad Crypto Selection
While PayPal offered only five cryptocurrencies (Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and PYUSD), Coinbase supports over 250 digital assets, making it ideal for investors seeking diversity.
Why Coinbase excels:
- Extensive range of coins and tokens
- Ability to withdraw crypto to external wallets
- Competitive fees: ~0.5% spread or fixed rates based on payment method
- Strong regulatory compliance as a licensed electronic money institution (EMI) in the UK
- Educational resources like guides, videos, and quizzes to help users learn
Coinbase also provides multiple deposit methods and mobile app support, ensuring seamless access to your portfolio anytime.
Compared to PayPal’s limited scope and higher fees (up to 3.99% per transaction), Coinbase delivers superior value and flexibility—especially for active traders and portfolio diversifiers.
3. Kraken – Best for Staking Rewards and Passive Income
If you're looking to earn returns on your holdings, Kraken is unmatched in the UK market. It offers some of the highest crypto staking rewards, allowing users to generate passive income directly from their assets.
Notable benefits:
- Staking available for Ethereum (ETH), Cardano (ADA), Polkadot (DOT), Polygon (MATIC), and more
- Annual percentage yields (APY) ranging from 4% to over 20%, depending on the asset
- Flexible and bonded staking options with predictable reward schedules
- Referral program offering bonus trading fee earnings
- High liquidity and strong security—95% of funds stored in cold storage
Kraken’s commitment to transparency and regulatory compliance further enhances its credibility. Regular independent audits and strict KYC/AML procedures ensure a safe trading environment.
For users focused on long-term growth and yield generation, Kraken fills the gap left by PayPal’s lack of staking options.
Comparing Key Features: eToro vs Coinbase vs Kraken vs PayPal
| Feature | eToro | Coinbase | Kraken | PayPal |
|---|---|---|---|---|
| Cryptocurrencies Offered | 70+ | 250+ | 185+ | 5 |
| Withdraw to External Wallet | Yes | Yes | Yes | No |
| Staking Rewards | Limited | Yes | Yes (up to 20% APY) | No |
| FCA Regulated | Yes | Yes (as EMI) | Yes | N/A for crypto |
| Fees | 1% spread | 0.5%–3.99% | 0%–0.26% | 2.5%–4% |
| Educational Resources | Yes | Yes | Moderate | Minimal |
As shown above, each platform offers distinct advantages. Your choice should depend on your goals—whether it’s ease of use (eToro), variety (Coinbase), or earning potential (Kraken).
Frequently Asked Questions (FAQ)
Can I use PayPal to buy or sell cryptocurrency in the UK in 2025?
No. Due to regulatory adjustments and compliance efforts, PayPal has suspended all cryptocurrency transactions globally until at least 2025.
Why did PayPal stop offering crypto services?
PayPal paused its crypto features due to increasing regulatory scrutiny and the need to build a more robust compliance framework ahead of new UK marketing rules for crypto products.
What is the UK’s “promotion regime” for crypto?
The promotion regime is a set of FCA-enforced rules governing how crypto assets can be advertised. It requires firms to meet strict standards before promoting digital asset services to consumers.
Which platforms are best for crypto beginners in the UK?
eToro is widely regarded as the best option for beginners due to its intuitive design, FCA regulation, built-in wallet, and educational tools.
Can I earn passive income from crypto in the UK?
Yes. Platforms like Kraken offer staking programs where users can earn annual rewards ranging from 4% to over 20% on supported cryptocurrencies.
Are there any risks in switching from PayPal to other crypto platforms?
While all platforms carry some risk, choosing FCA-regulated services like eToro, Coinbase, or Kraken significantly reduces exposure to fraud and ensures stronger consumer protection.
Final Thoughts: Embracing Better Crypto Options in 2025
While the suspension of PayPal crypto UK services may seem like a setback, it’s actually an opportunity to upgrade to more powerful, flexible, and rewarding platforms. Whether you're a beginner or an experienced investor, solutions like eToro, Coinbase, and Kraken offer superior functionality—from wider coin selection to staking rewards and full wallet control.
Now is the perfect time to reassess your crypto strategy and choose a platform that aligns with your financial goals. With stronger regulation comes greater security—and smarter choices for UK investors.
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