August 15, 2023

PayPal Rolls out Cryptocurrencies Hub for Holding Crypto

PayPal's Cryptocurrencies Hub

PayPal’s Cryptocurrencies Hub

Payments giant PayPal updated its terms and conditions to roll out Cryptocurrencies Hub, allowing certain users to hold, transfer, or trade crypto assets within the application. 

The latest PayPal terms and conditions are crystal clear on the requirements for crypto users who wish to utilize the platform in managing their cryptocurrencies, according to Cointelegraph. 

The Cryptocurrencies Hub service will enable the buying and selling of crypto and serve as a conduit for making payments for purchases via PayPal using money obtained after selling cryptocurrencies.

This month, PayPal launched a new stablecoin called PayPal USD (PYUSD), a US dollar-pegged stablecoin. The conversion of PYUSD to other crypto assets will be made possible through the Cryptocurrencies Hub. 

PayPal further said: “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.”

In order to access the Cryptocurrencies Hub, PayPal users are required to have a personal PayPal account and a Balance account that is in good standing. Additionally, they must undergo a KYC (know your customer) process, which includes providing taxpayer identification information.

PayPal takes the safety and security of its users seriously. It verifies crucial identifying information such as name, physical address, date of birth, and taxpayer identification number.

“You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub at this time,” the statement added. 

The upcoming update will facilitate the integration of Cryptocurrencies Hub with the user’s PayPal account, allowing for seamless access using their existing login credentials.

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