Bitcoin Forum

Despite that we don’t have the full custody of Bitcoin and other cryptocurrencies stored on Paypal, this latest move from them is likely a big move!

Source: https://gadgets.ndtv.com/internet/news/paypal-cryptocurrency-wallet-third-party-bitcoin-price-withdraw-digital-coin-allow-users-2450112

But the real question are the withdrawal fees from Paypal to third party wallets. And will they freeze our account if we withdraw a large amount of Bitcoin to our third party wallet? Although this news is a bit of a big news for Bitcoiners out there, it’s still “not your keys, not your coins”.

Any thoughts on this one guys?

That's no different than what centralized exchanges do, there is always that risk. Still, letting their users withdraw their crypto is a big step forward. I was actually expecting it since Skrill did the same thing not a long time ago.

Does anyone know if crypto services are still only available for U.S citizens? and whether it's soon coming to the rest of the world?

It'll probably charge a high fee, because he-he, it's PayPal.

Why would they freeze your account for such reason? They literally say that you're free to send your bitcoins to other custodial wallets. They surely have a limit of withdrawal, although it shouldn't be smaller than your current BTC balance.

This may be an improvement, if you didn't want your coins IOU to sit in just one place.

Looks like its still exclusive to the US for now. We might see gradual expansion by the end of 2021 and beyond.

https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete

My understanding is that they need to do a lot of paperwork and formalities if they want to make cryptocurrency available for the other countries. Still, looking at the pace at which they are adding new features to their cryptocurrency services, I won't be surprised if they make their service available to users in cryptocurrency friendly jurisdictions such as Japan, Canada and European Union within the next few months. For users in more restrictive countries (such as Indonesia and Philippines), it may take some more time.

You could say that.

If you are aware of the ROBINHOOD incident, PayPal is pretty much a similar entity, being run as a traditional corporation that might pull any tricks if the markets become too volatile against its interests.

What a big move? I do not use PayPal and I can not use PayPal to buy or sell cryptocurrencies. When PayPal has no option is the reason for the move. But the best way to buy and sell cryptocurrencies  still remain using decentralized platforms. Although, people are using centralized platforms but not privacy oriented.

ever since before there's a bunch of news about paypal will add bitcoin on their platform but so far this one seems legit.. But there's no difference with some wallet out there that implement bitcoin wherein the same as usual, so im wondering what will be a big move on this? Perhaps this cannot give a big contribution even its been a decentralised trusted wallet for how many years as well.. Just saying correct me if i'm wrong guys.

Well, now this neutralizes my earlier fears of PayPal selling fake BTC. But I suppose they're gonna charge fees so high people would rather not take their money off the platform..

Anyway, glad to know they at least offer this option - high fees or not, it's much better than selling something you can't claim.

PayPal black hole is finally opening slightly, maybe because lot of people asked them for Bitcoin withdrawal option, but they are probably still worse than average centralized exchanges,
and I think they are doing this only because they want to attract more crypto users as there are some rumors that they are working on their own centralized stablecoin, maybe called PayPal coin.
I can't find more information about this and how much are fees going to be for withdrawing Bitcoin, but I am sure they will be premium high and this option will only be available to citizens of United States.
Better read their terms carefully before using your PayPal account for anything crypto related.

that will probably the case. its still like stealing from users who are withdrawing their coins. they already got spread from them buying coins and after it the withdrawal fees too. this will force users not withdrawing but youd be surprise as well when they ask fees for storing coins on paypal lol i overthink it this time. 😄

these are just posibilities. its still good to have them on board.

PayPal is now less bad, but it's still pretty bad, their fees are horrendous and make centralized exchanges look like charity. I think most people who would trade crypto via PayPal are existing PayPal users who have balance, and newcomers who want to buy Bitcoin would almost always choose an exchange.

Lol! Finally! But yes, the risk of banning your withdrawal is still there. It was always there with any centralized wallet service providers, and it's the same with Paypal as well. Especially when Paypal was very stringent in all their actions and policy formations.

Unfortunately, I couldn't find anything official from Paypal's website yet. All I am getting this news from different news websites. Is there anyone who can share an official link of this news?

Since Paypal is really strict, not only for crypto but for anything else, i wouldn't think i do anything crypto related in there. But not means it is bad, i mean every adoption will be good for crypto, but as long my local  exchanges still allowing me to do anything common that we do in crypto, i prefer to choose it.

I disagree - people choose convenience, and it's way easier to add fiat to PayPal and then directly purchase from their app rather than purchase from an exchange and transfer to your private wallet. Newcomers are actually probably the most likely to choose PP over exchanges since most of them care about profits..

This is pretty huge. Paypal can actually be used as a custodial third-party wallet now instead of a pseudo-crypto exchange that bans people for trading lol.

They are still in control of your coins as long as you haven't withdrawn them. So if your account gets flagged for some suspicious activity, even if it's about some merchant issues, the whole account standing is affected, crypto and fiat.

Yeah. All centralized services are like that so I'm not surprised about it. To be honest, they aren't really any different from those centralized exchanges except Paypal is reputable and trusted.

It’s a step towards the right direction, at least. A lot of people have been asking PayPal to allow actual htc eithdrawals to their wallets and not just let some numbers on the screen tell them they have that much. I knew that it’s only a matter of time before they enable btc withdraws on the platform, and I hope that there are no strings attached to the enabling of withdrawals (bans due to ‘suspicious activity’ etc), otherwise it’s a useless feature.

Well, I have been using Paypal for umpteen years and never had major issues with it. Except the fees and exchange rate are pretty exorbitant.

I think it's natural that they allow people to withdraw their BTC, no? I mean, people can withdraw it from any other place where they're keeping their cryptos, so why would PayPal be different? I'm actually more surprised that PayPal currently doesn't allow it and is only planning to add this option because it sounds to me like the coins are trapped there. I also agree with others that the specifics like the fees and required documents are important here too.
And in any case, so far all this applies only to the US, right?

Whoever knows , maybe they take huge fees for transections according to current transection fee or try to introduce their own "PaypalCoin" to have discount for withdrawals.  ;D Just like the universal truth you already said, "Not your key, Not your crypto" which indicates that many users will make reputation thread regarding paypal that their account got freezed without any kind of notice or other things. So, it's better to dealing with such a amount which we can't afford to loss. But it's a greal news and opens more oppertunity for bitcoiners which can't be denied.

I think this is very big news for bitcoin and crypto lover. As you mention fee is big question. If Paypal do some big for this to decrease fee than it can be really big. However its first step and we cam expect much more in future.

It's PayPal. Even by converting USD to my own local currency is insane when it comes to their conversion rate.
I wouldn't involve any single satoshi of mine to that platform ever. There were already reports that people can't even get their funds withdrawn like it was frozen or something so yeah there's a chance on what you said that when you withdraw a huge portion of crypto then they'll surely gonna question you for that.

I think that this move from Paypal is just the same as any other company did , which is as soon as they caught wind of how much cryptocurrency became streamlined and popular they just jumped on the bandwagan just to capitalize on the profit that they can make from it considering how they are the most used payment platform in the world, i am not saying that it is a bad things, but from the prospective of somone who is using crypto for years i don't see a reason why i would use paypla to buy crypto than the other exchnage platforms that i have been using which are decentrelized and much more cheaper in terms of fees.

The news didn't surprise me, it was foreseeable. A little faster than expected, but that's a step in the right direction. PayPal is developing into a stock exchange. It would be important that the service is also offered in Europe. Has anyone read this?

I think I can agree with Paypal high rates since they are doing a pretty good job in providing high quality service so I think we can expect that they will do the same in cryptocurrency wallets, I hope.

The permission just shows us how they view cryptocurrencies more openly. The important thing is that they charge a transaction fee for a withdrawal. I think it will be higher than any crypto exchange we know. That's how to get rich with Paypal.
If they are a holder, they will definitely choose a better way to buy bitcoins and withdraw money at a low cost on other trading platforms.

Pretty sure that they are going to freeze them because they will be overreactive towards bitcoin and cryptocurrencies since it can be used for criminal activity. Also, don't trust this thing that they are proposing, it's still at the end of the day not your keys not your coins. Plus knowing PayPal, pretty the fees are expensive.

That’s really nice, allowing users to withdraw their cryptocurrency from their PayPal wallet to a third-party wallet is a good move. That’s what a lot of people wanted, so that they can be able to move their cryptocurrency if they want, to another wallet and not having to convert to fiat before they can move their money out from Paypal.

As for the fees, I don’t think there is going to be any much difference in what you’re going to be paying while using other wallets. This service is not yet available where I live, but I have this feeling that PayPal might also add their own fees to what the blockchain fees is which will make a bit high.

^ Exactly, still good news though.
Any centralized or custodial wallets will always have terrible fees and I did not surprise if this will happen on Paypal but considering a still a good move because people at least can transfer their BTC to the wallet that they hold their key over the custodial wallet. Nevertheless, on the other side, this will probably have a good impact on the BTC price because there is a real transaction of BTC when we are using Paypal. But at least, they had a makes sense now on adopting BTC.

Being able to withdraw bitcoin to your own wallet or to any third party wallet is the norm not the exception. In fact, this feature had to be implemented since the beginning. Buying bitcoin on their platform and not being able to withdraw it didn't make any sense, imo.
Not sure when it will be implemented but certainly it will have a positive impact on the market since it's going to be the fastest and the easiest way to buy bitcoin (assuming they will charge reasonable fees).

So great that PayPal is taking steps to not only allow people to buy crypto as an investment, but also to actually use it like it was originally intended.  I'm sure a credit or debit card is in development and I'd love to see rewards paid out in crypto instead of cash back or other rewards.

At first PayPal seemed like a bucket shop, but now they're showing that they are developing their strategy and will continue to evolve into a legitimate crypto purchasing exchange as well as payment service.  I'm looking forward to what they implement next.

Long time ago they say didnt trust crypto . what happend now ? im quite shocking after find out some my favorite services are start accepting payment or withdrawal currency with crypto such coinegg . skrill . and some web hosting.  and now paypal maybe they learn something about daily volume in crypto market its no joke.