PayPal Extends Crypto Services to US Business Accounts
PayPal is expanding its crypto services to US business accounts, allowing companies to buy, sell, and hold cryptocurrencies. This move comes after PayPal and Venmo offered these features to individual customers.
In addition to managing crypto, businesses will also be able to transfer their digital assets to eligible external wallets, providing greater flexibility in fund management, though these features are currently limited to businesses outside of New York.
The temporary exclusion of New York businesses is likely due to the region’s strict regulations, including the BitLicense, although PayPal already has the necessary licenses to operate in the state.
PayPal continues to widen its footprint in the world of cryptocurrencies. Now, its US business customers can buy, hold, and sell crypto directly from their business accounts.
This decision marks a significant step for the payment company, as it extends its crypto services beyond its individual customer base, opening new opportunities for businesses looking to integrate digital assets into their financial operations.
Addressing Entrepreneurial Demand
This move doesn’t come as a surprise to those closely following PayPal’s crypto developments. PayPal and Venmo users have had similar access to these services for several years, with the ability to buy, hold, and sell cryptocurrencies.
However, PayPal has noticed a growing demand from entrepreneurs to access the same features.
“Business owners have increasingly expressed the desire to have the same cryptocurrency capabilities available to consumers.” – Jose Fernandez da Ponte, VP of Blockchain, Crypto, and Digital Currencies at PayPal
External Crypto Transfers for Businesses
In addition to allowing the purchase, sale, and holding of cryptocurrencies, PayPal will also offer businesses the ability to transfer their digital assets to eligible external wallets. This means that PayPal business accounts can now send cryptocurrencies directly to the blockchain, providing users with more flexibility and autonomy in managing their digital funds. However, it’s important to note that this service will not be available to all US businesses initially.
Temporary Exclusion for New York Businesses
Indeed, businesses based in New York will not immediately be able to take advantage of this new feature. PayPal has not specified a timeline for the service’s availability in the state. This restriction is likely due to New York’s strict financial regulations, including the famous BitLicense, which PayPal already holds. The company also has a trust license issued by the New York State Department of Financial Services, but the regulatory complexity of the region likely explains PayPal’s caution in introducing its new services for local businesses.
