PayPal announced last Nov. 12, that customers do not have to wait until 2021 for them to open a cryptocurrency account, as the service is now available to use. Qualified PayPal account holders will be able to buy, sell and hold specific cryptocurrencies like bitcoin (BTC), bitcoin cash (BCH), etherium (ETH) and litecoin (LTC). Moreover, the cryptocurrency purchasing limit has been raised to $20k weekly, from the previous $15K per week mentioned in the initial announcement.
PayPal revealed its plans of offering cryptocurrency services last October 21, 2020, whilst stating the the projected rollout will take place in the early part of 2021. Paypal’s cryptocurrency services currently include selling, buying and holding of any of the aforementioned cryptocurrencies.
PayPal’s Cryptocurrency Services is in Partnership with Venmo and Paxos
As it is, the terms and conditions of Paypal’s cryptocurrency services includes a prohibition against the direct transfer of crypto money to the cryptocurrency accounts of relatives and friends, or as direct payment for goods and services purchased from accredited merchants. Apparently, that particular aspect will require the use of Venmo’s social payment platform to which cryptocurrency service involving collaboration with the social payment processor will be available only in 2021 and to PayPal’s network of 26 million merchants,
In the meantime, the availability of PayPal’s cryptocurrency services is currently being carried out through a partnership with Paxos, a fintech firm tasked to handle cryptocurrency transactions in Paypa’s behalf. Paxos is a New York-based financial technology company that uses a private blockchain network in keeping custody of cryptocurrency accounts for delivery, payment and settlement of cryptocurrency transactions. That is why withdrawing crypto money from a PayPal account using an external crypto e-wallet is not allowed.
Basic Eligibility Requirements to Open a PayPal Cryptocurrency Account
First off, a person must be a U.S. resident aged at least 18 years or older; or of the age of majority recognized by the state in which an individual resides. However, the service is still not available to residents of Hawaii.
An existing personal PayPal cash account is necessary, as a means to access the Cryptocurrencies Hub since all related crypto services will be linked to the main PayPal account. A person’s login details to his personal Paypal account will be the same credentials to use when accessing the Cryptocurrencies Hub, as the latter will form part of that person’s Cash Account.
Paypal will also verify the previously verified information submitted when the personal Cash Account was opened, before a Paypal account holder is given access to the Cryptocurrencies Hub. The payments processor also reserves the right to verify from time to time, required information such as name, address, birthday and Taxpayer Identification Number by requesting a copy of a person’s government issued photo ID, or the most recent utility bill or any other proof of current residency.
