PayPal finally allows users to move their cryptocurrencies off the platform

Payment giant PayPal enabled trading and holding of cryptocurrencies for some users in October 2020. However, it has limited the possibilities of using tokens by preventing them from leaving the platform.

On June 7, the company announced that it would finally allow users to transfer their cryptocurrency assets to external wallets. However, as with cryptocurrency trading, the freedom of movement of tokens is only available to a few select customers in the United States, according to the Californian company.

PayPal (PayPal shares - ticker PYPL) acknowledged that users have requested this feature since it enabled access to cryptocurrencies nearly two years ago.

Remain competitive

PayPal's SVP and general manager of blockchain, crypto and digital currencies Jose Fernandez da Ponte told TechCrunch:

"This feature has been the most requested by our users since we started offering the purchase of cryptocurrencies on our platform."

Users can now move their Bitcoin (BTC), Ethereum (ETH) or other supported cryptocurrencies into exchange wallets or hardware devices. There will be network fees to pay and PayPal will take its share of transfers from its ecosystem.

"If users have cryptocurrencies somewhere else and want to consolidate them, they can take them to PayPal from external addresses," added Fernandez da Ponte before confirming that "they can also send cryptocurrencies to anyone in the PayPal system."

The move was inevitable if the company wanted to remain competitive in the cryptocurrency industry. Fernandez da Ponte confirmed PayPal's ambitions in the industry, stating that:

“We see ourselves as a link between the fiat environment, or traditional finance, and the web3 environment. We are enabling connectivity with other wallets, exchanges and applications ”.

He added that people continue to adopt cryptocurrencies despite current market conditions. "This move shows that we are committed to the long term," she said before confirming that PayPal will continue to invest in this sector and "stay on course".

US PayPal users must comply with additional know-your-customer (KYC) procedures if they want to transfer cryptocurrency assets.

The move was catalyzed by the move from a "conditional" to a "full" BitLicense license following approval by the New York Department of Financial Services.

PayPal shares up

On June 7, PayPal stock posted a marginal gain of 2,5%, changing hands to $ 88,31 in after-hours trading.

However, like most tech stocks, it was hit recently, down more than 55% since the start of the year. PYPL has dropped more than 70% from its all-time high of just over $ 300 in the mid-21st century.