August 16th, according to Cryptoslate, PayPal stated in an email sent to some users on August 14th that due to new rules introduced by the UK Financial Conduct Authority (FCA), PayPal will temporarily suspend its cryptocurrency purchase services in the UK from October 1st, 2023, and will resume in early 2024, with no specific date yet.

According to CoinsPaid Media, only users who have undergone comprehensive KYC checks through the PayPal platform and have a good reputation for their balance sheet accounts can use the cryptocurrency center function. Previously, PayPal added a cryptocurrency center function to user accounts to directly interact with digital assets.

PayPal has launched a new feature called the 'Cryptocurrencies Hub' which will allow certain users to hold, transfer, or trade crypto assets within the application. PayPal users must have a personal account in good standing, go through a KYC process, and will not directly hold the crypto assets themselves. <br>

On August 14th, Jose Fernandez da Ponte, Senior Vice President of PayPal Blockchain, Cryptocurrency, and Digital Currencies, stated that although PayPal's stablecoin PYUSD, which is currently launched on Ethereum, can only be obtained through the PayPal wallet, their goal is to make PYUSD also available on major trading platforms. PayPal believes that stablecoins are the killer application of the current blockchain, especially in remittances, B2B payments, and digital goods. PayPal's vision is to become the channel between fiat currency and Web3, enabling stablecoin payment systems to become mainstream.

The recent launch of PYUSD stablecoin by PayPal has raised concerns in the cryptocurrency community about centralization. Cryptocurrency experts who have studied the underlying smart contracts of PYUSD have found that the new stablecoin is actually written in a "very old" version of Solidity. Solidity is the most commonly used programming language for Ethereum, the world's second-largest blockchain.

Maxine Waters, the leader of the Democratic Party in the US House of Representatives, expressed concerns about PayPal's launch of stablecoins without a federal regulatory framework this week.In a statement on Wednesday, Waters said, "PayPal has 435 million customers worldwide, more than the total number of online accounts of all major banks. Given PayPal's scale and scope of influence, federal government oversight and enforcement of its stablecoin business is crucial to ensuring consumer protection and mitigating financial stability concerns."

Paolo Ardoino, the CTO of Tether, has welcomed PayPal's entry into the stablecoin industry, stating that it will encourage competition and drive innovation. He also addressed concerns about Tether's onboarding process, explaining that it requires strict anti-money laundering and know-your-customer procedures to avoid putting users at risk. Despite these measures, Tether has still processed redemptions, redeeming around $325 million worth of assets on August 7th.

Huobi has announced that it will list PYUSD, PayPal's newly launched stablecoin, and will offer PYUSD/USDT trading pairs with zero trading fees permanently. However, the exchange did not specify when it will list the stablecoin, stating that it will do so when market circulation and liquidity conditions are favorable. This announcement follows Huobi advisor Justin Sun's tweet expressing his hope to invite PayPal to issue PYUSD on Tron.&nbsp;

Within 16 hours of PayPal's launch of their new stablecoin (PYUSD), numerous copycat tokens with the same ticker have appeared on various chains, including Binance Smart Chain, Ethereum, and Coinbase's Base. However, it is important to note that the real PayPal USD token was created in November last year and can only be sent between verified PayPal and compatible wallets.

According to Circle CEO Jeremy Allaire, up to 70% of the adoption of USD Coin (USDC) comes from countries outside of the United States, with strong progress being made in Asia, Latin America, and Africa. Allaire also addressed concerns over USDC liquidity, stating that redemptions were outpacing issuance and that Circle's global banking and liquidity network was expanding.