PayPal has announced that it would halt all crypto sales until 2024, leaving many users puzzled and searching for alternatives. If you’re in the UK and wondering if PayPal is still an option for your crypto needs, the short answer is no.
However, we prepared this article to clarify this situation and offer you valuable alternatives for various types of cryptocurrency transactions and your own crypto needs!
Can You Use PayPal for Crypto in The UK in 2024?
Unfortunately, you can’t. PayPal has suspended all cryptocurrency sales and transactions until 2024. This decision affects users globally, including those in the UK. The company cited regulatory concerns and the need for a more robust framework as the primary reasons for this suspension. So, if you plan to use PayPal to buy or sell crypto, you’ll have to look for other options, at least for the next few months.
Starting October 8th, a “promotion regime” will come into effect in the UK, which relates to the rules for advertising and promoting crypto products. The UK’s Financial Conduct Authority (FCA) issued a final warning before implementing the new law, reminding that failure to comply could result in severe legal consequences.
PayPal decided to suspend its crypto services due to increasing regulatory scrutiny. The company aims to comply with all legal requirements and is currently working on enhancing its platform to meet these standards. Until then, PayPal crypto services will remain unavailable.
Alternatives to PayPal for Cryptocurrency Transactions
Since PayPal is off the table for the foreseeable future, exploring other reliable platforms for cryptocurrency transactions is essential. As a UK resident, you may have several alternative options to purchase and sell cryptocurrency:
- Mainstream apps like Wise, Revolut, and eToro allow crypto trading in a familiar digital wallet
- Specialized exchanges like Coinbase, Gemini, and Kraken offer more coin varieties
- Decentralized exchanges like UniSwap allow direct peer-to-peer crypto trading without an intermediary
- Bitcoin ATMs located throughout the UK enable purchasing crypto with cash
According to retail traders, eToro is the best option if you are a beginner or looking for an easy-to-use crypto wallet. At the same time, Coinbase has the most extensive range of cryptocurrency instruments. You should consider Kraken’s offerings if you’re interested in high rewards for staking cryptocurrencies and attractive interest rates.
Below, you will find the key elements of eToro, Coinbase and Kraken offerings:
| Company | Best for | Fees | Minimum deposit | No. of crypto assets |
| eToro | Beginners and crypto wallet | 1% (for crypto) | $0 | 70+ |
| Coinbase | Crypto offering | 0-3.99% varies by transaction type | $0 | 250+ |
| Kraken | Crypto rewards | 0.16%-2% varies by transaction type | $) | 150+ |
eToro: Best for Beginners and Crypto Wallet
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eToro in a nutshell
eToro appears to be a good PayPal crypto UK alternative for beginners looking to get started with cryptocurrency trading. One of the advantages of eToro is that it is regulated by the Financial Conduct Authority (FCA), which means it follows strict rules and standards to protect its customers and their funds. You can trust that your money and data are safe with eToro.
Another benefit of eToro is its easy-to-use interface that lets you buy, sell and exchange crypto with a few clicks. You don’t need to have any technical skills or experience to start trading on eToro. You can also access the eToro Money crypto wallet using your eToro credentials, which makes it convenient to manage your crypto assets.
eToro also supports many cryptocurrencies, including the most popular ones like BTC, ETH, XRP, BCH and XLM. You can choose from more than 70 crypto coins on the platform and explore new and emerging ones as well. You can diversify your portfolio and find the best opportunities in the crypto market.
eToro is a great choice for anyone who wants to start their crypto journey with a reliable and user-friendly platform. You can download the eToro Money crypto wallet app on Google Play or the App Store and start trading today.
| Feature | eToro | PayPal |
| Cryptocurrencies Offered | 70+ | 5 |
| Buying/Selling Crypto | Yes | Yes |
| Withdrawing Crypto | Yes | No |
| Fees | Low 1% spread | 2-4% |
| Educational Resources | Yes | No |
| Wallet Storage | Yes | No |
Coinbase: Best for Crypto Offering
Coinbase in a nutshell
While PayPal is a general payment service that only recently added crypto support. Coinbase is a dedicated platform for trading and investing in cryptocurrencies worldwide. It has more experience and expertise in crypto and offers more features and options for crypto users.
Coinbase supports over 250 cryptocurrencies, allowing you to withdraw crypto to your bank account or another wallet. PayPal does not allow you to withdraw your crypto to an external wallet or exchange. Coinbase gives you more control and flexibility over your crypto funds.
Coinbase charges lower fees than PayPal for buying and selling crypto. Coinbase charges a spread of about 0.5% plus a variable fee depending on the payment method and the transaction amount.
In a market that is often criticized for its lack of regulation, Coinbase stands out for its commitment to compliance with legal standards. The platform is regulated in the UK as an electronic money institution (EMI), adhering to all the necessary financial laws and regulations.
While Coinbase’s fees are not the lowest in the industry, they are competitive, especially when considering the range of services offered. The platform also provides multiple payment options.
| Feature | Coinbase | PayPal |
| Cryptocurrencies Offered | 250+ | 5 (Bitcoin, Ethereum, Litecoin, Bitcoin Cash and PYUSD) |
| Fees | 0.5% spread or fixed fees based on payment method | 2.5% deposit fee, 3.99% buying fee |
| User Interface | Simple, easy to use | Integrated with the PayPal platform |
| Educational Resources | Guides, videos, quizzes | Limited |
| Buying/Selling Crypto | Yes | Yes |
| Withdrawing Crypto | Yes | No (only within PayPal) |
| Security | 2FA, 98% in cold storage | 2FA, PayPal’s security measures |
You can learn about Coinbase here.
Kraken: Best for Crypto Rewards
Kraken in a nutshell
Kraken is renowned for its staking services, which allow users to earn rewards on their cryptocurrency holdings. The platform supports staking for a variety of cryptocurrencies, including but not limited to Ethereum, Polkadot, and Cardano. The staking rewards on Kraken are often higher than those offered by other exchanges, making it an attractive option for investors looking to earn passive income on their crypto assets.
The table below outlines the staking details for a selection of specific tokens. The complete list can be found here.
| Currency | Flexible Staking Rewards per Year | Bonded Staking Rewards per Year | Reward Schedule (Flexible) | Reward Schedule (Bonded) |
| Algorand (ALGO) | 1%-4% | N/A | Thursday Starting at 01:30 UTC | N/A |
| Cardano (ADA) | 3%-6% | N/A | Thursday Starting at 06:00 UTC | N/A |
| Cosmos (ATOM) | 7%-11% | 17%-21% | Thursday Starting at 03:00 UTC | Tuesday Starting at 03:00 UTC |
| Ethereum (ETH) | N/A | 4%-7% | N/A | Sunday Starting at 01:45 UTC |
| Polygon (MATIC) | 1%-3% | 3%-6% | Thursday Starting at 02:00 UTC | Tuesday Starting at 04:45 UTC |
| Polkadot (DOT) | 8%-12% | 15%-21% | Thursday Starting at 04:00 UTC | Tuesday Starting at 04:00 UTC |
In addition to staking, the platform has a referral program that allows you to earn a percentage of the trading fees generated by people you refer to the exchange. This creates an additional stream of income for active users. Moreover, Kraken occasionally runs promotional campaigns that offer bonuses and rewards, further incentivizing user participation.
Kraken is among the few cryptocurrency exchanges prioritizing transparency and regulatory compliance. It regularly undergoes independent audits and adheres to regulatory standards. 95% of assets are held in cold storage, and the KYC/AML procedures are quite strict.
| Feature | Kraken | PayPal |
| Crypto Staking Rewards | Yes, up to 20% APY on 15+ assets | No staking rewards offered |
| Supported Crypto Assets | Wide selection of popular coins | Limited selection of major coins |
| Platform Type | Crypto exchange | Payment processor with basic crypto features |
| Security | Specialized in crypto, 95% cold storage | General security, not crypto-focused |
| Liquidity | High liquidity for crypto markets | Lower liquidity |
PayPal Crypto UK Alternatives. Conclusion
PayPal’s decision to suspend cryptocurrency transactions until 2024 has left many UK residents looking for alternative platforms to meet their crypto needs. While this may be a temporary setback, it’s also an opportunity to explore other platforms that offer a range of features tailored specifically for cryptocurrency trading and investment.
For beginners, eToro stands out for its user-friendly interface and FCA regulation, ensuring a secure and straightforward experience. If you’re looking for a wide range of cryptocurrencies, Coinbase is your go-to platform, offering over 250 different crypto assets and robust security measures. For those interested in earning through staking, Kraken offers attractive rewards and a strong focus on regulatory compliance.
While PayPal’s absence from the crypto scene is notable, it’s far from a death knell for crypto enthusiasts in the UK. With many reliable alternatives available, now might be the perfect time to diversify your crypto portfolio and fill the PayPal crypto UK void.
FAQ
Can I use PayPal for buying or selling cryptocurrency in the UK in 2024?
No, you cannot use PayPal for cryptocurrency transactions in the UK in 2024. Due to regulatory concerns, PayPal has suspended all cryptocurrency sales and transactions globally until 2024.
What are the reasons behind PayPal’s decision to suspend crypto services?
PayPal cited increasing regulatory scrutiny and the need for a more robust framework as the primary reasons for suspending its crypto services. The company is working on enhancing its platform to meet legal requirements.
What is the “promotion regime” that will be effective in the UK starting October 8th?
The “promotion regime” is a set of rules for advertising and promoting crypto products in the UK. The Financial Conduct Authority (FCA) will implement these rules, and failure to comply could result in severe legal consequences.
What are some alternatives to PayPal for cryptocurrency transactions in the UK?
Some alternatives include mainstream apps like Wise, Revolut, and eToro, specialized exchanges like Coinbase, Gemini, and Kraken, and decentralized exchanges like UniSwap, and Bitcoin ATMs.
Why is eToro considered a good alternative for beginners?
eToro is regulated by the FCA and offers a user-friendly interface, making it a secure and straightforward option for beginners. It also supports many cryptocurrencies and has a secure crypto wallet.
How does Coinbase compare to PayPal in terms of crypto offerings?
Coinbase is a dedicated platform for trading and investing in cryptocurrencies and supports over 250 different crypto assets. In contrast, PayPal had a limited selection and did not allow withdrawals to external wallets.
What makes Kraken unique among crypto exchanges?
Kraken is known for its staking services, allowing users to earn rewards on their cryptocurrency holdings. It supports a variety of cryptocurrencies for staking and often offers higher rewards than other exchanges.
What should I consider when choosing an alternative to PayPal crypto UK?
When choosing an alternative, consider factors like user interface, fees, range of cryptocurrencies offered, and additional features like staking or educational resources. Make sure the platform is regulated and prioritizes security.