PayPal Offers Cryptocurrency Trading Service to Britain

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The company did not say how many of its 403 million accounts are in the UK, but the country accounts for just over 10% of its revenue.

PayPal said it will include “educational content” warning of the risks of investing in cryptocurrency within its app, and it has encouraged customers to research it before investing. Users will also be limited to £15,000 per transaction and £35,000 per year.

The Financial Conduct Authority (FCA) has taken a tougher stance on cryptocurrencies in recent months as more consumers have invested. It has repeatedly warned investors that the assets are risky and has cracked down on brokers including the UK arm of crypto giant Binance.

The European PayPal operation, which is based in Luxembourg, is authorized by the FCA and said it does not need additional approval to start trading cryptocurrency in Britain.

Fintech companies such as Revolut, Square and Robinhood have added bitcoin trading in an effort to cash in on the growing interest from retail investors.

After adding investing in cryptocurrencies in the US late last year, PayPal transaction returns – the discount you get from certain payments including cryptocurrencies – rose 33% in the first three months of 2021.

The company said that users who have invested in crypto regularly open the PayPal app, which makes them more likely to use other services such as paying through the app or sending money to people.

Bitcoin has been trading at less than $50,000 recently, up from about $11,500 a year ago.

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