PayPal is set to launch a cryptocurrency service in the UK. The first after 2020 that the company made available in the US.
The launch of PayPal's cryptocurrency service in the UK means that UK residents will be able to buy, hold and sell digital currencies from their standard PayPal account. This will practically allow millions of PayPal customers to start using and interacting with Bitcoin, Ethereum and other cryptocurrencies.
At the moment, users can choose the digital currencies Bitcoin, Ethereum, Bitcoin Cash or Litecoin.
The US version of the PayPal encryption service launched last year and has evolved tremendously. Speaking to CNBC, PayPal's CEO on blockchain and digital currencies said:
It goes very well in the US. We expect it to go well in the UK.
As with existing encryption services, PayPal's UK encryption options will use Paxos, a US-based company. Without prejudice to UK regulators, PayPal UK-based users will be able to buy or sell cryptocurrencies worth up to:
- .15.000 XNUMX per transaction
- .35.000 XNUMX a year
These are not very big limits, but they are more than enough for most users.
Access to cryptocurrency services will be possible through a new encryption tab that will soon appear on the service (we are always talking about the UK).
Along with options for buying and selling cryptocurrencies, PayPal's encryption tab will provide real-time price information, educational content, and other information about the potential risks of digital currency transactions.
Trading with Bitcoin and Ethereum through PayPal seems to be a welcome addition for UK users (especially those new to cryptocurrency), but it is important to note that PayPal's crypto wallet comes with restrictions.
1. Bitcoin and other cryptocurrencies in your PayPal account are somewhat hostage, as you can not send them to different digital wallets or other users.
This means that PayPal can be used to create a small stock of Bitcoin, Ethereum, Litecoin or Bitcoin Cash, you will not be able to spend or send your cryptocurrencies anywhere else.
For many users of Bitcoin (or other cryptocurrencies), this is unacceptable.
2. PayPal has a reputation for closing or suspending accounts, and if the company decides to, you probably won't be able to do much.
But regardless of the above, the expansion of PayPal encryption services in another country is very good for Bitcoin.