Online electronic payments provider PayPal is set to cease domestic commercial payments in Taiwan in compliance with local laws and regulations from 21 September 2015.

Through the suspension of payments operations in the country, users with Taiwanese PayPal account will be unable to either send or receive funds from other Taiwanese PayPal users. However, users can still receive payments from international sales and trading, as well as make payments for purchases of goods or services from overseas merchants.

PayPal has already issued a notice to its Taiwan customers announcing termination of operations in the country.

The company recently announced that it will close its operations in Puerto Rico as government imposed 2% tax for all money transmission firms.

PayPal said: "We sincerely apologize in advance for any inconvenience this may cause. We will continue to enhance our platform and improve our services to serve your needs."

Financial Supervisory Commission (FSC) Banking Bureau deputy director general Jean Chiu told Taipei Times: "PayPal, whose international office is registered in Singapore and is not registered as a Taiwan-based subsidiary, was barred from processing domestic payment transactions when amendments to the Electronics Payment Processing Institutions Act took effect on May 1."