PayPal has hit pause on cryptocurrency purchases for its European users in Luxembourg, effective June 25, 2026. The culprit: a new international tax reporting framework that requires the company to collect and verify detailed customer information before it can legally facilitate new buy orders.

The temporary freeze applies specifically to new purchases of Bitcoin and other crypto assets through PayPal’s platform in Luxembourg. Users who already hold crypto in their PayPal accounts can still sell or manage those positions. They just can’t add to them for now.

The Crypto-Asset Reporting Framework, or CARF, is the OECD’s answer to a simple question: how do you tax something that moves across borders as easily as an email? Developed by the…