PayPal Launches Crypto Offerings in the European Union Starting with Luxembourg: Details
PayPal has taken its first steps with crypto offerings in the European Union (EU), choosing Luxembourg as its entry point. In the coming days, PayPal customers in the landlocked city will be able to buy, sell, and store digital assets in their respective PayPal accounts. Users will be able to perform these tasks through the mobile app, as well as through the browser. On its new marketplace, the minimum amount for which PayPal will allow users to purchase cryptocurrencies is 1 EUR (about 85 rupees).
Bitcoin, Litecoin, Bitcoin Cash, as well as Ether were chosen as the first four crypto assets that would be supported by PayPal in Luxembourg.
The company is also willing to collaborate with the Luxembourg authorities in their process of forming the digital asset sector to keep it in alignment with existing financial systems.
“The introduction of this service offers Luxembourg customers a new way to explore cryptocurrency within the PayPal environment they are familiar with. The addition of Luxembourg is an important step in PayPal’s mission to make currencies digital more accessible,” said Jose Fernandez da Ponte, SVP and GM, Blockchain, Crypto & Digital Currencies, PayPal in an official statement.
The timing of PayPal’s foray into the EU crypto business seems like a rather calculated decision.
Last October, the Economic and Monetary Affairs Committee (ECON) of the European Parliament approved the MiCA legislation. First proposed in September 2020, the draft MiCA Rules List aims to create a uniform crypto legal framework for all 27 EU states.
The legislation is expected to be rolled out across the EU by 2024, giving companies like PayPal plenty of time to adhere to EU standards and fine-tune their operations accordingly.
As for PayPal, the company has taken steps to understand the crypto industry and expand related services in several of its markets.
In February, the payments processor had appointed a special council to act as an adviser on digital currencies, cryptocurrencies, as well as blockchain technology.
PayPal started operating in the crypto industry in the United States two years ago in 2020, allowing its users in the United States to buy, hold and sell cryptocurrencies.
Later in September 2021, the company launched cryptocurrency trading on the platform in the UK market.