PayPal, the renowned finance tech platform, has plans to roll out cryptocurrency services in Luxembourg. This move is an attempt to expand crypto services in the European Union. PayPal is headquartered in Luxembourg, which could prove to be an entryway for the other 26 countries in the bloc.
This could happen if the Markets in Crypto Assets (MiCA) regulation is passed and goes into effect. If this happens, PayPal will permit customers in Luxembourg to buy, sell, and hold digital currencies.
The proposed MiCA regulation will allow firms registered in any member state to get a license to offer services all across the EU. This process has been termed “passporting.”
Jose Fernandez da Ponte, SVP and GM, of blockchain, and digital currencies at PayPal, at the time, said;
Adding Luxembourg is an important step in PayPal’s mission to make digital currencies more accessible.
PayPal Aims To Change The Role Of Crypto In Global Finance
Customers in Luxembourg will be able to explore the digital currency market through a trusted and safer platform, as PayPal intends to work in accordance with lawmakers. The company said its purpose is to ensure that they are able to form and structure the role of digital assets in global mainstream finance and commerce.
Additionally, PayPal shall also provide educational content and FAQs for customers, which will provide a better understanding of the pros and cons of cryptocurrencies.
It enabled customers to be able to buy, sell, and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for as little as €1 through the website or even the mobile app with their PayPal balance, which is linked to their bank accounts, or with the help of EU-issued debit cards.
PayPal Looking Out For Its Customers
The other aspect of rolling out the service in Luxembourg was to provide all potential users with better accessibility. In that regard, PayPal is quoted as saying;
To purchase cryptocurrency, eligible customers can log into their PayPal account via the website or their mobile app, navigate to the new crypto tab, and view the four cryptocurrencies available. Customers can choose from pre-determined purchase amounts or enter their own purchase amount and follow the prompts to purchase the cryptocurrency of their choice. Customers will be able to purchase cryptocurrency using their PayPal balance, linked bank accounts, or EU-issued debit cards. If customers choose to sell cryptocurrency with this new service, funds will be available quickly in their PayPal accounts.
PayPal says it will not charge the customers for the custodial services, but buying and selling will attract fees.
The initial rollout of PayPal’s crypto service took place in the U.S. in 2020, after which PayPal followed through with the expansion into the U.K. which was conducted in the past year.
Other major platforms are also looking to take advantage of the MiCA regulation in recent times. Crypto exchanges Binance and Coinbase have secured licenses in European countries, with Nexo and Gemini also registered in Italy.