UK PayPal encryption service launched
PayPal launches cryptocurrency service in UK
London – PayPal launches cryptocurrency service in UK
A major US online payments company said on Monday that UK customers will be able to buy and sell digital currencies starting this week.
This is the first international extension of PayPal’s crypto product, which was first launched in the United States last October.
âIt works very well in the United States,â Jose Fernandez Daponte, general manager of blockchain, crypto and digital currencies at PayPal, told CNBC. “I hope it will work in the UK”
PayPal’s encryption allows customers to buy and sell Bitcoin, Bitcoin Cash, Ethereum, or Litecoin for just Â£ 1. Users can also track crypto prices in real time and find educational content in the market.
Like the US version of the product, PayPal relies on Paxos, a regulated cryptocurrency company in New York City, to enable the buying and selling of cryptocurrencies in the UK. PayPal said it launched the service in collaboration with relevant UK regulators.
A spokesperson for the Financial Conduct Authority, a UK financial services supervisory body, could not immediately comment on the announcement.
Expansion of recruitment
PayPal’s encryption service is similar to that of UK fintech company Revolut. As with Revolut, PayPal users cannot move their cryptocurrencies out of the app. Revolut recently started testing the ability for users to withdraw Bitcoin to their personal wallet.
PayPal claims that seizing cryptocurrencies makes it easier for people to enter the market. âTokens and coins have been around for a while, but we had to be relatively sophisticated users to access them,â Da Ponte said. âHaving it on a platform like ours is a very good entry point. “
Payment processors are one of the many leading financial companies making the leap into the largely unregulated world of cryptocurrencies. Despite lingering concerns about price volatility, consumer protection, and potential money laundering in the industry, large companies like Mastercard, Tesla, and Facebook have recently been excited about cryptocurrencies.
Bitcoin, the world’s largest digital currency, hit a record high of nearly $ 65,000 in April before falling below $ 30,000 in July as Chinese regulators cracked down on the market. It has since recovered to a price of $ 48,400.
PayPal started with crypto trading, but the company is confident that digital currencies will play a bigger role in e-commerce in the long run. Earlier this year, PayPal began allowing U.S. consumers to use crypto to pay millions of online merchants around the world. The company has also extended the buying and selling of crypto to its popular mobile wallet, Venmo.
âWe definitely have ambition to continue expanding our product line in the US, UK and other markets,â said Da Ponte.
âWe are very careful starting with the first feature and then we look at where the market takes us. Different markets have different desires for the products.
The launch of PayPal’s crypto services in the UK will also come as regulators become increasingly wary of the rise of digital currencies. In June, the FCA banned the UK subsidiary of Binance, the world’s largest cryptocurrency exchange, for failing to meet money laundering requirements.
âIt makes sense that regulators are paying more attention to this area as consumer interest and transaction volumes increase,â Da Ponte said, and PayPal is establishing a âstrong regulatory relationshipâ. I added that I did.
Meanwhile, as the use of cash in many developed countries declines rapidly, central banks are exploring the possibility of issuing their own digital currencies. In April, HM Treasury and the Bank of England announced that the British press would assess the potential launch of a digital version of the British pound called “Britcoin”.
Da Ponte said the central bank’s digital currency (CBDC) is a âgood prospect,â but said policymakers will take time to address the main issues involved.