U.S. multinational financial technology company PayPal is expanding its reach into the European Union (EU) with the launch of a crypto trading service in Luxembourg.
According to an announcement shared Thursday, the new service will allow users in the country to buy, sell and hold digital currencies such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
PayPal is primarily a fintech company, but it pivoted into the crypto-currency space in 2020 with the introduction of trading in the United States. The success of this pilot launch prompted the company to launch the same trading offering in the UK last year.
The Luxembourg push is its way of expanding into a wider EU region as part of its global expansion. According to the company, customers can acquire crypto-currencies starting at €1.
“The addition of Luxembourg is an important step in PayPal’s mission to make digital currencies more accessible. We are committed to continuing to work closely with regulators and policymakers in Luxembourg to make a meaningful contribution to shaping the role that digital currencies will play in the future of global finance and commerce “, said Jose Fernandez da Ponte, SVP and GM, blockchain, crypto & digital currencies.
PayPal’s launch in the EU comes as the region is just months away from the start of the implementation of the Cryptographic Asset Markets Framework (MiCA), a comprehensive law that is designed for the digital currency ecosystem. With this bill, crypto service providers will have broader access to operate in the region, as companies licensed in member countries will gain passporting rights in all member states.
In the European Union, PayPal is currently headquartered in Luxembourg, giving it a soft landing in its efforts to penetrate the region.
PayPal’s Crypto offering in Luxembourg: A mix of value and simplicity
PayPal said its crypto offering in Luxembourg is designed to make it easy for all potential users to access.
PayPal stated that “to purchase crypto-currencies, 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 available crypto-currencies. Customers can choose from predetermined purchase amounts or enter their own purchase amount and follow the instructions to purchase the crypto-currency of their choice. Customers will be able to purchase crypto-currencies using their PayPal balance, linked bank accounts or EU-issued debit cards. If customers choose to sell crypto-currencies with this new service, the funds will be quickly available in their PayPal accounts“.
The company does not charge its customers for its custodial services, but there may be a fee for buying and selling.
PayPal’s adoption of crypto-currency is part of the related expansion of digital currency services by leading financial technology companies, including Robinhood and Revolut.