PayPal has suspended new cryptocurrency purchases for users in Luxembourg starting June 25, 2026. The platform currently prevents users from buying Bitcoin and other digital assets while it updates its compliance systems to meet new international tax reporting requirements.
The pause follows the adoption of the Crypto-Asset Reporting Framework (CARF) into Luxembourg law. This OECD-developed standard requires financial institutions to collect and verify detailed customer data, including tax identification numbers and residential addresses, for reporting to the Administration des Contributions Directes.
Existing users retain full control over their current holdings and may continue to sell or manage their assets. The company is currently updating its onboarding procedures for both new and existing accounts to ensure all necessary documentation is gathered in accordance with the new legal framework.
PayPal expects to resume crypto purchase services by the end of 2026. This timeline allows the company approximately six months to finalize the technical and compliance infrastructure needed to satisfy the reporting obligations mandated by the local implementation of CARF and the broader EU DAC8 directive.
