As a first for the cryptocurrency industry, PayPal will now enable customers outside of the United States to buy, hold, and trade cryptocurrencies. The company announced today the launch of a new service that will allow customers in the United Kingdom to choose between four types of cryptocurrency buying and selling — including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash — that can be purchased using a bank account or debit card that is linked to the company’s platform.
PayPal Holdings said on Monday that clients in the United Kingdom would be able to purchase, trade, and hold bitcoin and other cryptocurrencies beginning this week, according to the firm. As the first worldwide extension of PayPal’s cryptocurrency services outside of the United States, this roll-out may serve as a catalyst for broader popular acceptance of the new asset class.
According to the company, the San Jose, California-based business, which has over 403 million active accounts worldwide, is one of the biggest mainstream financial institutions to provide customers with access to cryptocurrencies.
Customers were able to utilize their digital coin holdings to purchase at the millions of merchants on PayPal’s network when the company introduced cryptocurrency buying and selling in the United States earlier this year. The firm believed that entering this new asset class would promote the widespread usage of virtual coins across the world and prepare its network for the introduction of new digital currencies created by companies and central banks.
According to Jose Fernandez da Ponte, Vice President and General Manager for Blockchain, Crypto, and Digital currencies at PayPal, “We are committed to continuing working closely with regulators in the U.K., and around the world, to offer our support— and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,”
Cryptocurrency Buying and Selling in the U.K.
PayPal’s service in the United Kingdom will compete with those of major cryptocurrency buying and selling exchanges such as Coinbase Global as well as fintech startups such as Revolut, among others. Through the PayPal mobile app or online, customers will be able to purchase bitcoin and other cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash using their PayPal accounts.
The move comes at a time when more traditional financial institutions are beginning to give their customers, both individuals and institutions, access to digital assets as the value of cryptocurrencies continue to rise. Hence, cryptocurrency buying and selling are going to be more prominent in the upcoming years.
Despite the fact that it is a new service, it is remarkably similar to PayPal’s existing one in the United States. PayPal has informed us that it is customizing transaction limits for its clients in the United Kingdom.
At the time of introduction, the maximum amount that may be spent on a single cryptocurrency buying and selling is £15,000. Within a 12-month period, the maximum amount that may be spent on purchases is £35,000. In the United States, the business originally offered the service with a weekly purchasing limit of $20,000 dollars. However, in July, the company increased the purchase cap to $100,000 and removed the yearly purchase restriction.
“The pandemic has accelerated digital change and innovation across all aspects of our lives — including the digitization of money and greater consumer adoption of digital financial services,” Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal, said in a statement.
“Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls, provides us the unique opportunity, and the responsibility, to help people in the U.K. to explore cryptocurrency,” he added.
PayPal currently supports cryptocurrency buying and selling in the United States, excluding Hawaii, and U.S. territories, in addition to the United Kingdom, but the company says it is exploring the potential of digital currencies through partnerships with licensed and regulated cryptocurrency platforms, as well as with central banks in other parts of the world, at this time.