Topic: PayPal allows users to withdraw Bitcoin to external wallets - page 2. (Read 688 times)

So far, their press release is not mentioning there being fees on behalf of Paypal, and only refers to the necessary network fees:

-   No fees to receive crypto (bitcoin, Ethereum, Bitcoin Cash,  Litecoin) on your Paypal account, other than the network fee you pay when sending them over.

-   No additional fees to send from your Paypal account, other than the network fees (I figure the user won’t have much of a saying here, so there may be some implicit part of these fees kept by paypal if they overcharge and then send at a lower rate – my speculation).

-   No fees at all for sending crypto from one Paypal account to another.

As usual, we’d need to get hold of the detailed information in either the TOS or the Fees page to see if there is any fine print and/or limits/restrictions to bear in mind.

t direction.
I think most will continue to keep their BTC the way they have done so far, because if PP was their crypto bank, they will not see this option as an advantage.

t direction.
Still, maybe this opportunity will attract some new customers who know the benefits of controlling their private keys. If they were to pull off a smart business move, then they should lower the service fee so that they are competitive with those who still charge dearly for it.

The information on Fees and Pricing has also been updated, being the following something to read with consideration:We can bet that it will be lower (in the above context) almost every time …

Wrong sellers will realize they don't need Paypal if they have a good reputation.

And buyers will need paypal when they do not trust a seller.

So there is room for both.

We will need to wait and see how this unwinds.  BTW this bill that is up for passage for sale of BTC for cash or stablecoin

Has a $200 gains exception this is a federal bill.

https://www.lummis.senate.gov/wp-content/uploads/Lummis-Gillibrand-Responsible-Financial-Innovation-Act-Final.pdf


I read it a a real boost to btc

"SEC. 201. GAIN OR LOSS FROM DISPOSITION OF VIRTUAL CURRENCY.
(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
“SEC. 139J. GAIN OR LOSS FROM DISPOSITION OF VIRTUAL CURRENCY.
“(a) In General.—Gross income shall not include gain or loss from the disposition of virtual currency in a personal transaction (as such term is defined in section 988(e)) for the purchase of goods or services.
“(b) Limitation.—
“(1) IN GENERAL.—The amount of gain or loss excluded from gross income under subsection (a) with respect to a disposition shall not exceed $200.
“(2) AGGREGATION RULE.—For purposes of this subsection, all dispositions which are part of the same transaction (or a series of related transactions) shall be treated as one disposition.
“(3) OTHER DISPOSITIONS.—For purposes of this subsection, subsection (a) shall not include dispositions in which virtual currency is sold or exchanged for cash, cash equivalents, digital assets (as defined in section 9801, title 31, United States Code), or other securities or commodities."

Quoted from link above


So if I buy a 1000 dollar miner using 801 worth of btc  that went to up to 1000 it is a tax free gain.

Means a lot of book keeping.

It could also be I buy 800 worth of btc it goes to 999 and I buy a gpu.


It counts as no gain of the 199.

I could also have 400 in purchased btc and pay 599 for pc also no tax on that gain.

This is a big encouragement to making more purchases with btc.

Obviously you need to track the value of the btc you spend.

Now that paypal lets you pull btc from its account it will encourage spending some btc.

I am going to buy 100 in btc today on my paypal account knowing that if it goes up to 299 and I spend it it is a non taxable event.

-snip
...

Without additional withdrawal fees, the whole point of bitcoin in paypal is generally lost. Otherwise, what will paypal earn on? All this paypal started in order to earn. Therefore, I also expect that the transaction will be charged an additional fee on top of the commission already due on bitcoin network.

Without additional withdrawal fees, the whole point of bitcoin in paypal is generally lost. Otherwise, what will paypal earn on?

This is good coming from PayPal but question is how much fees are they going to charge for that withdrawal, and somehow I highly doubt this is going to be only transactional fee without anything extra.

The fee we will charge you is our estimate of the fee the network will take to process your transfer. The fee that you will pay to us may be higher or lower than the actual fee paid to the network, based on market conditions. If the actual network fee is higher, that amount is PayPal’s or its Service Provider’s responsibility. If the actual network fee is lower, PayPal or its Service Provider will retain the difference.

•   Weekly send limit: Crypto Assets totaling the equivalent of $10,000 USD
•   Minimum “send” transfer amounts:
o   BCH: 0.01 BCH
o   BTC: 0.001 BTC
o   ETH: 0.01 ETH
o   LTC: 0.01 LTC
We may change the above limits for safety, security or other lawful reasons. You can view your current limits by logging into your personal PayPal account.

•  Send or receive Crypto Assets for any unlawful purpose or in relation to any unlawful activity, including in violation of any applicable sanctions regime;
<…>
Actions We May Take if You Engage in Any Restricted Activities
the actions we may take include, but are not limited to, limiting your access to or use of the Cryptocurrencies Hub, and/or suspending your Cryptocurrencies Hub, immediately and without penalty to us, including limiting your ability to buy or sell Crypto Assets. You authorize PayPal to seize your Crypto Assets if we believe a transaction relating to those Crypto Assets involves money laundering, terrorist financing, fraud or any other type of crime.

PayPal also works to prevent unauthorized transfers of Crypto Assets, and will reimburse you for unauthorized transfers out of your Cryptocurrencies Hub in the form and quantity of the Crypto Asset that was removed from your account, up to a maximum lifetime cap of an equivalent of $50,000 USD (based on the U.S. Dollar value of the Crypto Asset at the time of the unauthorized transaction), as long as you cooperate with us, and follow the procedures described below.

At least they heard of what their customers demand.

But in exchange for this action, as I read in the article Paypal was planning to increase their identity verification process for users before they can send out their Bitcoin or other altcoins completely outside the Paypal's wallet.  So what it is?

However, it turns out better than before because you are now able to transfer your fund to an external wallet.  I think this system will be going to adopt them is the same as other custodial wallets locally.  The same in our local wallet, there's no fee when you send from the same wallet and if it's external transaction will vary only on the network fee and which is sounds great.

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this.

I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

So after almost 2 years (from October 2020) of letting people deposit bitcoin and trade it on their platform, they have accumulated enough bitcoin from their customers to feel safe to let people withdraw some of it (considering not everyone would withdraw)!

Paypal needs to die out.

It's completely redundant and pointless.

It's only available in the U.S. right ?
Paypal still needs to think about the people from other countries as well.
I might be wrong, but yes Paypal isn't allowing other countries for this, as Bitcoins aren't legal in other countries.
But what about the countries like El Salvador? Aren't the people of that country be allowed to buy,sell,transfer Bitcoins in paypal ?
At least what they can do is stop banning Paypal account of the users or set some sort of warning limits for the ones who buys or trade Bitcoins in Paypal.
Willing to hear other people's thought on this manner.

So after almost 2 years (from October 2020) of letting people deposit bitcoin and trade it on their platform, they have accumulated enough bitcoin from their customers to feel safe to let people withdraw some of it (considering not everyone would withdraw)!
Basically they sold and held fake bitcoin for a long time.

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

I don't think it is going to happen.

It's only available in the U.S. right ?
Paypal still needs to think about the people from other countries as well.
I might be wrong, but yes Paypal isn't allowing other countries for this, as Bitcoins aren't legal in other countries.
But what about the countries like El Salvador? Aren't the people of that country be allowed to buy,sell,transfer Bitcoins in paypal ?
At least what they can do is stop banning Paypal account of the users or set some sort of warning limits for the ones who buys or trade Bitcoins in Paypal.
Willing to hear other people's thought on this manner.

If Paypal fully become an exchange competing coinbase I wouldn't be surprise.

As the title says, PayPal is finally allowing their users to move their Bitcoin to their own wallets. PayPal went a long way, from getting people banned for buying Bitcoin using PayPal ( I know few people that lost their PayPal accounts due that) to now this. I am just curious how many PayPal users will actually go for that option and start taking responsibility for their own money. Somehow I doubt that number will be huge, bits its a good thing to have that option and is a step in the right direction.

So after almost 2 years (from October 2020) of letting people deposit bitcoin and trade it on their platform, they have accumulated enough bitcoin from their customers to feel safe to let people withdraw some of it (considering not everyone would withdraw)!
Basically they sold and held fake bitcoin for a long time.