Cryptocurrencies were dominated by news that one of the world’s largest payment processors, PayPal, will allow UK users to buy and sell cryptocurrencies on the platform.
Here are the top stories that caught our eye.
PayPal taps into the UK crypto market
PayPal – one of the worlds’ largest payment processors – is tapping into the UK crypto market by allowing its UK users to buy, hold and sell virtual currencies.
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PayPal’s new service which was rolled out this week is available on both the website and the app. To begin with only four of the leading cryptocurrencies – Bitcoin, Ether, Litecoin and Bitcoin Cash – will be offered.
PayPal’s announcement marks the company’s first crypto offering outside the US. The company said the move was inspired partly by the technological acceleration driven by Covid-19 and lockdown measures.
PayPal – perhaps trying to pre-empt any critics – said there was an educational element to its offering as well. “By accessing their PayPal account via the website or the mobile app, they can view real-time crypto prices, access educational content to help answer commonly asked questions, and learn more about cryptocurrencies, including the opportunities and risks,” the firm said in a statement.
All eligible UK customers, once officially verified, can access the new crypto tab either through the website or through the app.
Customers can start by buying as little as £1 of cryptocurrency via PayPal. No fees will be levied to hold cryptocurrencies in an account, but there are transaction fees and currency conversion fees. In all, PayPal users will be able to buy or sell up to £35,000-worth of crypto a year, or £15,000 in any one transaction.
UK regulator says that Binance is incapable of being regulated
The world’s largest cryptocurrency exchange was “effectively blacklisted”, as the thisismoney website put it, in the UK on Thursday after the Financial Conduct Authority - the UK regulator – said the exchange was not “capable of supervision”.
The FCA said Binance poses a “significant risk to consumers”. However, UK users of Binance can still use the exchange’s website Binance.com as the website is not tied to Binance’s UK entity.
The FCA’s comments come as central banks and regulators are alarmed at the breakneck speed at which cryptocurrencies are growing.
It also comes after traders who were seeking compensation from Binance for an outage earlier in May secured more than $5m in funding for an international arbitration case against the cryptocurrency exchange.
The outage was related to China’s crackdown on the cryptocurrency sector in May, which wreaked havoc in crypto markets.
Crypto markets update
Here’s what happened in the crypto market in the last seven days
- Bitcoin rose 2.6% to $48,335.
- Ether rose 1.1% to $2,356.
- Dogecoin fell 10.9 % to $0.29.
- Cardano rose 16.3% to $2.85.
- Binance Coin rose 12.3% to $488.
What investors need to watch out for
- Cardano’s “Alonzo” Upgrade. The upgrade is due to launch in mid-September. The Alonzo hard fork will pave the way for much-anticipated adoption of smart contract functionality.
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Rachel Reeves faces £23 billion capital gains tax “black hole” – will she be forced to look elsewhere?The fiscal watchdog has downgraded its forecast for capital gains tax revenues, leaving chancellor Rachel Reeves with £23 billion less than previously expected
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Protests erupt in Turkey after the arrest of Erdogan's rivalTurkey's president has jailed his main political opponent, Ekrem Imamoglu
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FCA to force “cooling-off period” for new crypto investorsNews Firms will have ensure investors have the appropriate knowledge and experience to invest in crypto as the FCA cracks down on the industry.
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Coinbase’s USD stablecoin – what is it and why should you use it?Advertisement Feature USD Coin – a stablecoin created by cryptocurrency exchange Coinbase – offers a safer way to invest in and hold cryptocurrency. Here’s what it is and how it works.
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Gold or bitcoin: what will replace the US dollar?Analysis As Russia and the West move further apart, there’s a growing need for a new global reserve currency. The US dollar could soon be replaced by gold or bitcoin, argues Dominic Frisby.
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15 ways bitcoin makes the world betterAnalysis What problem does bitcoin solve? How does it make the world better? Dominic Frisby shares his view.
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The cautionary tale of FTX and the future of bitcoinAnalysis The collapse of FTX has fractured the crypto market, but bitcoin will survive the fallout, argues Dominic Frisby.
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Paypal, bitcoin, and the weaponisation of moneyNews Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
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Three cryptocurrency funds for the adventurous investorTips The crypto sector is extremely risky, but these three cryptocurrency funds may appeal to adventurous investors who anticipate a rebound, says David Stevenson.
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Michael Saylor: the tech mystic who bet it all on bitcoinProfiles Michael Saylor, the founder of data analytics company MicroStrategy, has pursued the odd strategy of placing the whole firm on red at the roulette table that is bitcoin. Where will the ball finally land?
