UK residents can now buy, hold and sell digital currency through PayPal – marks an important milestone for a company that started offering digital asset services less than a year ago.
Accordingly, starting today, UK customers will have access to BTC, ETH, LTC and BCH ONLY through the website and mobile application of PayPal. This is the first step in the process Paypal expands digital currency services beyond the US – first launched last November.
Customers can purchase digital currency as little as £1 ($1.3) using a PayPal bank account, balance or debit card.
PayPal does not charge a customer HODLing fee but will charge a transaction and currency conversion fee. There is currently no fee schedule, but in the US, fees knife ranging from 50 cents for purchases under $25 to 1.5% transactions for purchases over $1,000.
Customers cannot transfer digital coins to other wallets. Cryptocurrencies purchased through PayPal can only be spent through the app, though the company is reportedly changing that — at least for now. in the United States.
Jose Fernandez da Ponte, the senior managing director of PayPal's digital currency division, cited the "digitalization of money" during the pandemic as one of the main motivations for getting into crypto in the first place.
“Our global reach, digital payments expertise, and consumer and business knowledge, combined with rigorous security and compliance controls give us a unique opportunity as well as responsibility to help every UK citizen explore digital currency.”
By providing digital currency services, PayPal can play a role in increasing exposure to digital assets in the UK. According to the report, out of all the European countries this is the PayPal jurisdiction with the highest penetration with over 2 million monthly active users.
Rumors of PayPal's digital expansion plan have been circulating since last month when CEO Dan Schulman told investors the service would be coming to the UK soon. The company is also keeping an eye on developments in the decentralized finance sector (DeFi), which could be a precursor to future integration plans.
Legally, the UK's Financial Conduct Authority (FCA) is becoming increasingly strict with exchanges that fail to meet the registration requirements. 's activities Binance in the country were shut down earlier this summer after the agency warned it was not allowed to offer regulated trading in the country. Da Ponte said Paypal is "committed to continuing to work closely with regulators in the UK and around the world" in rolling out its digital currency services.