PayPal will not allow users to withdraw or transfer bitcoins
The big news today was the announcement of the payment company PayPal about its intention to add support for bitcoin and other cryptocurrencies. Additional details of the offer became known after the publication of information on PayPal’s own website.
“PayPal users in the US can buy, sell and hold selected cryptocurrencies directly in their accounts. PayPal will also make cryptocurrencies a source of financing for purchases in 2021, ”the company writes..
This is where the possibilities for working with cryptocurrencies in PayPal end, that is, users will not be able to carry out other important operations, for example, withdraw or transfer bitcoins.
“Can I deposit and withdraw cryptocurrency on PayPal? Currently, you can only hold the cryptocurrency you purchased in your PayPal account. In addition, the cryptocurrency in your account cannot be transferred to other accounts inside or outside of PayPal, ”the company writes..
Similar conditions are offered by the British fintech startup Revolut, however, in its case, users can transfer cryptocurrency within the system.
It also became known which cryptocurrencies will be supported by PayPal. These are Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Against this backdrop, Litecoin has supported the Bitcoin rally and has climbed more than 11% in recent hours. Bitcoin Cash and Ethereum are up 7% and 5% respectively, outperforming the broader market as well.
In addition, it’s worth noting that PayPal provides access to cryptocurrencies under a limited license from the NYS Department of Financial Services. To do this, she entered into cooperation with the Paxos service, which is the holder of the full Bitlicense license. According to the regulator, holders of limited licenses “may be subject to increased control, be it the scale, frequency of inspections, or something else”, which may also affect the volume of services provided. The limited license is issued for two years, after which the company will need to renew or upgrade it to full.