PayPal begins crypto service in the United Kingdom, expects US like success

The USA digital payment giant PayPal has started its crypto service in the United Kingdom where it now allows users to buy, hold or sell cryptocurrencies from today. This is the first expansion of the company’s crypto project and it is hoping to receive the same success it received in the United States after launching crypto service there in October last year. 

However, it still allows only a few options to choose from for customers who want to buy cryptocurrency on PayPal. Users can buy or sell Bitcoin , Bitcoin Cash, Ethereum, and Litecoin and the price of the purchase begins from as low as £1. 

“It has been doing really well in the U.S. We expect it’s going to do well in the U.K.”, Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto, and digital currencies, said in a conversation to CNBC. 

Much like the U.S working model of the company, the U.K working model is also based on Paxos, a New York-based company. It allows users to buy, hold or sell crypto assets but it doesn’t allow them to move their assets outside PayPal, i.e, to their personal wallets which is similar to Revolut, the U.K fintech firm. 

Coming with strong regulatory relations

It is to be noted that the regulators around the world have gone more strict regarding the crypto space. Recently, Malaysia and U.K both banned the subsidiaries of Binance as they were unable to meet their money-laundering requirements. 

Since the heat is on, PayPal has come prepared. da Ponte once again said that PayPal has launched itself in the U.K crypto space with strong regulatory relations. 

“It makes sense that, as there is increased consumer interest and increased volume, the regulators are putting more attention into this space,” da Ponte said, adding that PayPal has built “strong regulatory relations.”

He was also aware of central banks around the world preparing their own digital currencies. He said it was a fantastic prospect but it would take some time for the people in charge to figure out and then iron out the major issues that are involved. 

Bitcoin, after reaching its all-time high in April and then tumbling below $30,000 had crossed the mark of $50,000 for the first time after May and at the time of publishing this article, it was being traded at $50,285. 

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