Good news for British cryptocurrency investors! Payments giant PayPal announced on 17 September that it has completed its crypto trading rollout. This means that PayPal Crypto is now available to all eligible UK customers. This is considered a breath of fresh air because some UK banks have started cutting payment channels to exchanges. Here’s what you need to know.
What cryptocurrencies can you trade with PayPal Crypto?
Currently, PayPal Crypto only supports four cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BTH)
You can buy, hold and sell these cryptocurrencies if you have a PayPal account once you’ve verified your identity. You can also access real-time cryptocurrency prices and educational content. However, it’s probably best not to view this content as financial advice!
If you’re considering the PayPal Crypto service, then it’s worth noting that there are some things you cannot do. According to the PayPal cryptocurrency terms and conditions, you can’t:
- Send crypto assets to family or friends
- Withdraw crypto assets from your Cryptocurrencies Hub to an external cryptocurrency wallet
- Deposit crypto assets from an external cryptocurrency external
- Use crypto assets directly as currency to pay for goods or services
- Change, reverse or cancel cryptocurrency purchases and sales once they have been authorised
Some of these restrictions won’t last forever. PayPal’s Jose Fernandez da Ponte says that Paypal will soon start allowing withdrawals to third-party wallets. This could definitely be something to keep an eye on.
Additionally, a PayPal spokesperson told Cointelegraph that PayPal wants to see how its customers use its buy, hold and sell crypto service before rolling out any new features.
Is the PayPal Crypto service regulated?
The PayPal Crypto service is not regulated by the UK’s Financial Conduct Authority or by the Luxembourg Commission du Surveillance du Secteur Financier (CSSF). However, the bank that provides the service is regulated by CSSF.
Note that PayPal Crypto is not monitored by the UK Financial Ombudsman Service or the European Consumer Centre. Additionally, the service is not subject to protection under the financial services compensation schemes in the UK or Luxembourg.
What are the tax implications of using the Paypal Crypto service?
Investing in cryptocurrencies is a form of passive income, meaning you’re obligated to notify HMRC through a Self-Assessment tax return. Failing to report passive income is illegal, and because PayPal makes reports regarding transactions to tax authorities, you can easily get caught.
If you need your financial records for tax purposes, then PayPal has made it easy for you to access your transaction history and transaction statements through your PayPal account.
The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other Cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
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