PayPal Expands Crypto Service Into Luxembourg in First EU Foray

PayPal will expand its crypto service to Luxembourg "in coming days," the payments company said Wednesday.

The expansion marks the first rollout of its crypto service to a European Union country, PayPal said.

Luxembourg, which hosts PayPal's EU headquarters, could serve as a gateway for the other 26 countries in the bloc, once the Markets in Crypto Assets (MiCA) regulation comes into effect. This regulatory regime should in theory give firms registered in any single member state a license to offer their services throughout the EU through a process known as passporting. Crypto exchanges Binance and Coinbase have taken this route in recent months. Most recently, Nexo and Gemini registered in Italy.

The move into Luxembourg follows the initial rollout of the crypto service in the U.S. in 2020, followed by an expansion to the U.K. last year. Once available, users will be able be able to buy, sell and hold bitcoin, ether, litecoin and bitcoin cash starting as low as 1 euro ($1.05).

Read more: EU Delays Vote on MiCA Crypto Legislation Until February

UPDATE (Dec. 8, 15:19 UTC): Adds that Luxembourg is the first EU country to receive the service in headline, second paragraph.