Recently, PayPal stated that it will integrate its crypto services into Luxembourg as the first step toward integration within the EU.
The EU is currently working on the MiCA bill, which aims to regulate the crypto market and protect crypto users. Meanwhile, PayPal’s EU headquarters are based in Luxembourg. Once the MiCA bill comes into regulation, PayPal aims to make Luxembourg a “crypto breakout” for other EU countries.
Through MiCA, exchanges don’t need to get a license for each EU country they want to operate in. Instead, they can have one license from a member state and use it throughout the EU.
PayPal introduced these crypto services in the US back in 2020. After the US, they expanded to the UK. Now, they are looking to expand throughout the EU by starting with Luxembourg.
This expansion means that users in the EU can trade cryptocurrencies with ease. Users can hold crypto assets worth as low as €1.
These expansion strategies by payment platforms show that crypto adoption in the EU is closer than we think. While MiCA could make crypto trading strict, PayPal’s crypto services make it easier for the average crypto customer to obtain crypto assets.
With Luxembourg being one of the richest countries in the world, and with PayPal’s headquarters located there, it could be the right approach for PayPal to start crypto integration there.
It’s interesting to see what happens with the MiCA regulation and attempts to adopt crypto in the EU. Recently, the ECB proposed more taxation for cryptocurrencies and even ban cryptocurrencies that pose environmental threats.