The UK becomes the primary country outside the US to access PayPal’s crypto service.
PayPal is about to launch its cryptocurrency service within the UK, the primary expansion since its 2020 launch within the US.
PayPal’s UK cryptocurrency service launch means UK residents can purchase, hold, and sell digital currencies from their standard PayPal account and enable millions more PayPal customers to start using and interacting with Bitcoin, Ethereum, and other cryptos.
PayPal Launches UK Crypto Services
PayPal‘s cryptocurrency service allows users to shop for, sell, and hold cryptocurrencies in their PayPal account. Currently, users can choose between Bitcoin, Ethereum, Bitcoin Cash, or Litecoin and buy cryptos for as little as $1.
Today, we are announcing the launch of a new service that will enable eligible customers in the UK to buy, hold and sell #Cryptocurrency directly from their PayPal account. Terms apply. pic.twitter.com/RG5xoqlHmr
— PayPal UK (@PayPalUK) August 23, 2021
The US version of PayPal’s crypto service launched last year and has gone from strength to strength. Lecture CNBC, PayPal’s head for blockchain, crypto, and digital currencies, said:
It has been doing rather well within the US. We expect it’s getting to had best within the UK.
As with its existing crypto services, PayPal’s UK crypto options use the Paxos exchange, a US-based company. Subject to UK regulators, UK-based PayPal users can purchase or sell cryptocurrency worth up to:
- £15,000 per transaction
- £35,000 per annum
These aren’t particularly large limits but quiet enough for many users.
Cryptocurrency services are accessed through a replacement crypto tab which will appear on the service shortly. Alongside options to shop for and sell cryptocurrencies, the PayPal crypto tab will deliver real-time price information, educational content, and knowledge on the potential risks of trading cryptos.
PayPal Crypto Cannot Be Used for Direct Bitcoin Payments
While the introduction of PayPal’s Bitcoin and Ethereum exchange may be a welcome addition for UK crypto users (especially that new cryptocurrency), it’s important to note that the PayPal crypto wallet comes with some serious limitations.
For one, Bitcoin and other cryptos held in your PayPal account are somewhat held hostage, as you’re unable to send them to different digital wallets or other users.
That means for the meantime, while PayPal might become a handy option for build-up a little reserve of Bitcoin, Ethereum, Litecoin, or Bitcoin Cash, you will not be ready to spend or send your cryptocurrencies anywhere else.
This lack of control over your cryptocurrency is unacceptable for many Bitcoin users (and users of other cryptocurrencies). The common adage is, “not your keys, not your crypto,” meaning that if you do not control the private encryption keys linked to your cryptocurrency wallet, you do not have control over your money.
In this case, the statement rings true. Furthermore, PayPal features a patchy reputation regarding account closures and suspensions, with many users finding that when PayPal decides your account is closed, you’ll have little recourse.
Regardless, PayPal’s expansion of its crypto services into another territory is sweet for Bitcoin, as they assert.