# PayPal Pauses Crypto Purchases in Luxembourg Amid CARF Implementation

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/24256
Published: 2026-09-25T20:30:56.000Z
Updated: 2026-09-25T20:30:56.000Z
Section: Regulation

> New purchases and crypto-account onboarding became unavailable June 25, while existing customers can still hold and sell assets. PayPal expects purchases to return by the end of 2026.

PayPal paused crypto purchases and new crypto-account onboarding in Luxembourg from June 25, 2026, as the country implements international tax-reporting requirements for digital-asset services.

Existing customers can continue to hold and sell crypto assets. PayPal expects purchases to resume by the end of 2026 but has not provided a specific restoration date.

“From 25 June 2026, crypto buys and onboarding will be paused due to regulatory updates. You can still hold and sell crypto. We expect crypto buys to return by end of year,” PayPal said.

The pause is limited to Luxembourg and does not establish a broader suspension across Europe. PayPal’s announcement covers crypto purchases generally and does not specify which individual assets are affected.

The change coincides with Luxembourg’s implementation of the Crypto-Asset Reporting Framework, or CARF, an international tax-transparency system developed by the Organisation for Economic Co-operation and Development. The framework applies to new and existing crypto accounts.

PayPal will collect, review and classify customer information to determine which accounts belong to reportable users. The information generally includes a customer’s name, address and tax identification number, along with aggregated data on crypto acquisitions, dispositions and transfers. Reporting is generally annual.

“If PayPal determines that an account is reportable under CARF … PayPal is required to report information to the Luxembourg Inland Revenue (Administration des Contributions Directes, ACD), which may then share that information with other relevant tax authorities,” PayPal said.

Luxembourg enacted its CARF implementation law on March 27, 2026. The law requires covered crypto-asset service providers to submit user, tax-residency and transaction information to the Administration des Contributions Directes.

The first reportable data covers calendar years beginning Jan. 1, 2026, with reports due by June 30 of the following year. Failures involving due-diligence and reporting obligations can carry fines of up to €250,000, while certain registration and filing violations carry a €5,000 fine.

CARF was incorporated into European Union tax-cooperation rules through Directive (EU) 2023/2226. The framework is designed to promote global tax transparency for transactions involving crypto assets.