PayPal, the global online payment platform, has announced that it has received regulatory approval from the Financial Conduct Authority (FCA) to provide cryptocurrency services in the United Kingdom. This means that PayPal customers in the UK will soon be able to buy, sell, hold and use various digital currencies, such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash, within their PayPal accounts.
This is a significant milestone for PayPal, which launched its crypto service in the US last year and has seen a strong demand from its users. According to a recent survey by the company, more than half of its crypto customers said they are more likely to use digital currencies as a payment method after using PayPal’s service. Moreover, PayPal claims that its crypto service can help increase the adoption and awareness of cryptocurrencies among its 400 million users worldwide.
PayPal’s crypto service in the UK will offer several features and benefits for its customers, such as:
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Easy and secure access to cryptocurrencies through the PayPal app or website, without the need for additional wallets or passwords. Educational resources and guides to help customers understand the basics and risks of crypto investing. Real-time prices and charts to track the performance of different cryptocurrencies. The ability to convert cryptocurrencies to fiat currencies at any time, with no fees until 2022. The option to use cryptocurrencies as a funding source for purchases at millions of PayPal merchants around the world, with instant conversion at checkout.
PayPal’s crypto service in the UK is expected to launch in the coming weeks and will be available to verified customers who have a bank account or debit card linked to their PayPal account. The company plans to expand its crypto offering to other markets and regions in the future, as well as to introduce new features and functionalities.
PayPal’s move into the crypto space is part of its broader vision to become a “super app” that offers a variety of financial services and products to its customers. The company has recently acquired several fintech startups, such as Curv, a digital asset security firm, and Paidy, a Japanese buy now, pay later platform. PayPal also announced that it will launch its own digital wallet, called PayPal Cash Plus, which will allow customers to access their funds across different accounts and services.
PayPal’s entry into the UK crypto market is likely to have a positive impact on the growth and innovation of the local crypto ecosystem, as well as on the wider adoption and acceptance of digital currencies among consumers and businesses. PayPal’s crypto service will also face competition from other players in the space, such as Coinbase, Revolut, Wirex and Bitstamp, which offer similar or complementary services. However, PayPal’s brand recognition, large customer base and extensive merchant network could give it an edge over its rivals.
PayPal’s crypto service in the UK is a welcome addition to the diverse and dynamic crypto landscape in the country, which has been attracting more attention and investment from both local and global players. As one of the leading online payment platforms in the world, PayPal has the potential to bring crypto to the mainstream and make it more accessible and convenient for millions of people.
Taiwan to make Bitcoin legal Tender
In a historic move, Taiwan has announced that it will make Bitcoin a legal tender in the country, becoming the second nation in the world to do so after El Salvador. The decision was made by the Legislative Yuan, the unicameral legislature of Taiwan, after a heated debate and a close vote on October 30, 2023.
The bill, titled “The Digital Currency Legalization and Regulation Act”, aims to provide a clear legal framework for the use, exchange, taxation and regulation of Bitcoin and other cryptocurrencies in Taiwan. The bill also recognizes Bitcoin as a foreign currency for the purposes of foreign exchange and trade.
According to the bill, Bitcoin will be treated as a legal means of payment for all public and private transactions in Taiwan, as well as a store of value and a unit of account. The bill also stipulates that all individuals and businesses that deal with Bitcoin must register with the Financial Supervisory Commission (FSC), the main financial regulator in Taiwan, and comply with anti-money laundering and counter-terrorism financing rules.
The bill also grants the FSC the authority to issue licenses for cryptocurrency exchanges, custodial services, mining operations and other related businesses. The FSC will also be responsible for setting the standards and guidelines for the security, transparency and consumer protection of the cryptocurrency industry in Taiwan.
The bill was proposed by a coalition of lawmakers from various political parties, led by Chen Chih-Chung, a member of the ruling Democratic Progressive Party (DPP) and the son of former President Chen Shui-bian. Chen Chih-Chung said that the bill was motivated by the need to embrace the global trend of digitalization and innovation, as well as to boost Taiwan’s economy and competitiveness.
“Bitcoin is not only a technological innovation, but also a social and economic revolution. By making Bitcoin a legal tender, we are opening up new opportunities for our people, our businesses and our nation. We are also sending a clear message to the world that Taiwan is a leader in digital transformation and a defender of freedom and democracy,” Chen Chih-Chung said in a press conference after the bill was passed.
The bill was met with mixed reactions from different sectors of society. Some praised the bill as a bold and visionary move that would put Taiwan at the forefront of the cryptocurrency industry and attract more foreign investment and talent. Others criticized the bill as a risky and irresponsible gamble that would expose Taiwan to financial instability, cyberattacks, fraud and money laundering.
The bill also faced strong opposition from China, which considers Taiwan as part of its territory and has been increasing its military and diplomatic pressure on the island. China has banned all forms of cryptocurrency trading and mining since 2017 and has repeatedly warned Taiwan against any moves that would challenge its sovereignty or undermine its “one China” policy.
China’s Foreign Ministry spokesperson Zhao Lijian condemned Taiwan’s decision to make Bitcoin a legal tender as a “provocative and illegal act” that would “severely damage” cross-strait relations and regional peace and stability. Zhao Lijian also urged the international community to “reject and sanction” Taiwan’s “separatist” actions.
Taiwan’s President Tsai Ing-Wen defended the bill as a sovereign and democratic choice of the Taiwanese people and said that Taiwan would not bow to China’s threats or interference. Tsai Ing-Wen also expressed her confidence that Taiwan would be able to overcome any challenges or risks that might arise from adopting Bitcoin as a legal tender.
“Taiwan is a free and open society that respects innovation and diversity. We are not afraid of change or challenge. We believe that Bitcoin can bring positive changes to our economy, society and culture. We also believe that Bitcoin can help us strengthen our ties with our friends and allies around the world who share our values and vision,” Tsai Ing-Wen said in a televised address to the nation.
The bill is expected to take effect on January 1, 2024, after a two-month period of public consultation and preparation. The FSC has announced that it will issue detailed regulations and guidelines for the implementation of the bill before the end of this year.