By
Steve Muchoki
July 1st, 2024
While PayPal’s new crypto service allows users to explore the crypto industry, access to this innovative feature has been restricted in certain jurisdictions and for specific individuals.
Leading American payment company PayPal has taken another step into the digital asset industry with the launch of its Cryptocurrencies Hub. This feature allows users to interact with different crypto assets such as Bitcoin (BTC) and Ethereum (ETH). The move comes just one week after introducing its native stablecoin dubbed PYUSD, which is backed 1:1 by the US dollar.
According to a report by Cointelegraph, the payment giant updated its terms and conditions to offer insights into how users can leverage the newly introduced Cryptocurrencies Hub to explore the world of digital assets. This strategic maneuver demonstrates the company’s ambition to establish itself as a prominent crypto-friendly platform.
PayPal’s foray into the emerging economy began in October 2020 when the company expanded its services to allow users to buy, sell, and hold assets in their accounts. Shortly after that, in March 2021, the company extended its crypto services, enabling customers to checkout at other online businesses using cryptocurrency.
PayPal Unveils Its Cryptocurrencies Hub
The US-based payments company has now deepened its foothold in the industry with the launch of the controversial stablecoin and the subsequent introduction of the Cryptocurrencies Hub. This new feature aims to facilitate the seamless buying and selling of cryptocurrencies. Notably, it empowers users to use the proceeds from their crypto transactions to purchase through the PayPal platform.
Upon its official launch, the Cryptocurrencies Hub will be seamlessly integrated with users’ existing PayPal accounts, accessible using their existing login credentials.
Furthermore, the new crypto offering is designed to enable swift conversions between PYUSD and a diverse range of other digital assets. According to the company, any balance shown in the Cryptocurrencies Hub represents the total amount of each asset displayed.
“Any balance in your Cryptocurrencies Hub represents your ownership of the amount of each Crypto Asset shown. You will not hold the digital Crypto Assets themselves in your Crypto Asset balance,” the company explained in the newly updated terms of service.
Hawaii Users Are Exempted from Using PayPal’s New Service
While PayPal’s new crypto service allows users to explore the crypto industry, access to this innovative feature has been restricted in certain jurisdictions and for specific individuals. The company has chosen a personalized approach to grant access to the newly introduced service.
According to the payment firm, to be eligible for the Cryptocurrencies Hub, new users must open a personal PayPal account and maintain a Balance Account in good standing. Additionally, users must provide key identification information, including their full name, physical address, date of birth, and taxpayer identification number.
However, these rules do not apply to Hawaii residents as the company has excluded them from using the new crypto service.
“Your access to the Cryptocurrencies Hub will be through your personal PayPal account’s Balance Account. If you are a Hawaii resident, you will not be permitted to set up a Cryptocurrencies Hub at this time,” the company said.