PayPal has enabled crypto usage for its users in the United Kingdom, but before withdrawing funds, they have to be converted to fiat.
PayPal’s UK users can now buy and trade cryptocurrencies. All eligible users can now trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) in the California-based fintech platform.
We are delighted to share that all eligible customers in the UK can now buy, hold and sell #Cryptocurrencies #Bitcoin, #Ethereum, #BitcoinCash & #Litecoin from their PayPal account. Look out for it in the PayPal app.
— PayPal UK (@PayPalUK) September 17, 2021
In October, PayPal made its first foray into the world of digital currencies, with ambitions to expand its crypto capability to the United States. In February, the firm announced that it would begin expanding to other Western countries after launching its operations in the US.
PayPal started the crypto offers business in the United Kingdom in late August. PayPal has enlisted the services of Paxos for the launch in the United Kingdom, the same as with the launch in the US. Paxos is a digital currency firm based in New York.
The PayPal blockchain and crypto activities are led by Jose Fernandez, who commented on the latest UK service enhancement. PayPal, he said, plans to play a fundamental part in defining the role of cryptocurrency in finance worldwide.
In addition, Fernandez stated that PayPal expects the new crypto deployment in the UK to be as successful as the one in the United States. Users will have access to crypto-price monitoring and educational material in addition to trading cryptocurrencies on the platform.
There are several restrictions to using digital currencies on PayPal’s platform. Users can only use PayPal’s blockchain to ‘purchase, sell, and hold’ cryptocurrency. This implies they won’t be able to access their private crypto keys or transfer cryptocurrency out of the PayPal platform. Furthermore, the tokens cannot be used to pay for products or services directly.
PayPal quite explicitly stated that the no private key policy holds due to protecting holdings of users against hacker exploitations; otherwise, users are in complete control of their crypto holdings.
Users who want to spend their cryptocurrency must first convert it back into fiat currency. PayPal’s ‘Checkout with Crypto’ payment option, which is accessible to PayPal customers in the United States, automates this process.
Nonetheless, PayPal’s no private key rule did not hold up well when the launch in the United States happened. Crypto fanatics veterans argued that no private key means no control over digital assets on the platform.
Using PayPal accounts to buy, sell, and hold crypto is easy and basic. Users must first sign into their PayPal accounts and then pick the ‘Crypto Section.’ Users will choose a digital currency from the list and go through certain KYC compliance checks in this step.
Entering personal information, transmitting identification proofs, and understanding the hazards involved with cryptography are all part of this. PayPal will also examine the information given, and applicants that successfully completed prior can now move to the cryptocurrency amount and select available payment methods.