Cryptocurrency round-up: PayPal taps into UK crypto market and FCA blacklists Binance
In a mixed week for crypto, PayPal taps into the UK market and the FCA blacklists Binance. Saloni Sardana looks at the week in crypto.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times), Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.
Follow her on Twitter at @sardana_saloni
-
8 of the best houses for sale with libraries
This week: the best houses for sale with libraries – from a five-storey Georgian townhouse in Bloomsbury, London, to a 15th-century property with a library in a medieval tower in Lozère, France
By Natasha Langan Published
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published
-
UK recession: How to protect your portfolio
As the UK recession is confirmed, we look at ways to protect your wealth.
By Henry Sandercock Last updated