PayPal crypto: how buying crypto with PayPal works in the UK and US
PayPal crypto lets you buy, hold and sell some cryptocurrencies inside the PayPal app in the UK and the US, according to PayPal's own pages. PayPal has paused UK purchases before, so UK readers should check in the app that buying is open. PayPal is also accepted as a payment method on some separate crypto platforms. The biggest difference between the two countries is custody. In the UK you buy rights to crypto that PayPal holds for you and, for most coins, you cannot move it to your own wallet (PYUSD is handled differently). In the US you can send crypto to an external wallet.
What PayPal crypto lets you do in the UK
As of November 2026, PayPal's UK page describes buying, selling and holding crypto. The coins it lists include Bitcoin, Ethereum, PayPal USD (PYUSD), Solana and Chainlink. The service is run by PayPal UK Ltd, which is registered with the FCA for cryptocurrency services under firm reference number 1000741, according to PayPal UK's cryptocurrency terms. This is a registration under the money laundering rules, not full FCA authorization.
Under those terms, the crypto in your Cryptocurrencies Hub has two limits you should know about before you buy:
- You do not receive actual coins. You buy rights in crypto that PayPal group companies and service providers hold in a pooled omnibus account, not in your name.
- You cannot send that crypto to family or friends, pay for goods with it, or transfer it to or from an external wallet.
PayPal treats its PYUSD stablecoin differently, so check PayPal's PYUSD help page before assuming the same limits apply.
The service launched in the UK in 2021. PayPal paused new UK purchases from 1 October 2023 to meet new FCA rules, and holders could keep and sell what they already had. PayPal UK's FCA registration took effect on 31 October 2023.
What PayPal crypto lets you do in the US
In the US the service is provided by PayPal Digital, Inc., a New York limited purpose trust company, and Paxos performs some custody, trading and transfer services. You must be a US resident and at least 18 years old.
You can buy, hold, sell, convert, send and receive crypto. You can send it to an external wallet that you own or to another person's wallet, and PayPal charges a network fee for each transfer. The address has to match the asset. A Bitcoin address cannot receive Bitcoin Cash, so sending to the wrong type can mean the coins are lost for good.
PYUSD is a US dollar stablecoin issued by Paxos, not by PayPal, and it runs on the Ethereum, Solana, Arbitrum and Stellar networks. If the idea is new to you, read how stablecoins work first.
How much it costs to buy crypto with PayPal
For most coins in both countries the price has two layers: a transaction fee and a margin built into the exchange rate. In the US, PayPal describes each purchase as including a transaction fee and an exchange rate that includes its spread.
The UK adds a currency step. PayPal buys crypto in US dollars, so it converts your pounds first, and the quoted price includes fees and a mark-up. PayPal does not charge a transaction fee when you buy or sell PYUSD in the UK. The price is shown before you approve the purchase and is valid for a limited time only.
PayPal publishes its fee schedule on its Fees page, and the figures change, so this guide does not copy them. Instead of comparing headline fees, compare the final amount of crypto you would receive for the same sum on another provider.
Is buying crypto on PayPal safe?
Protection is thin in both countries. In the UK, PayPal's terms say the crypto service is not regulated by the FCA, is outside the Financial Ombudsman Service and is not protected by the Financial Services Compensation Scheme. In the US, crypto on PayPal is not insured by the FDIC, SIPC or any other insurer, and PayPal's terms add that crypto activity is not regulated in some states.
Custody is the other trade-off. UK users depend on PayPal group companies and a custodian to honor their rights. US users can move coins to a wallet they control, which shifts the responsibility to them. Read how crypto wallets work before you do, and learn about keeping a seed phrase safe, because losing your only copy of it can lock you out of the coins permanently.
The UK rules are set to change. The FCA opened its authorization gateway for crypto firms on 30 September 2026, and the FCA's page on the new regime says it is expected to come into force on 25 October 2027.
Buying Ethereum with PayPal
If you buy Ethereum with PayPal in the UK, you hold rights to Ethereum in your Cryptocurrencies Hub rather than coins, and you cannot send it to anyone or withdraw it to an external wallet. In the US, if Ethereum is offered in your app, you can send it to a wallet you own for a network fee. The receiving address has to be an Ethereum address, just as a Bitcoin address cannot take Bitcoin Cash.
Using PayPal to pay on a crypto platform
Some exchanges accept PayPal as a payment method. Which platforms accept PayPal, and for what, varies by country and platform.
Paying with PayPal does not make a platform safe. In the UK, check the FCA register before you pay to confirm the firm is registered for crypto. Registration still brings no FSCS or FOS cover, and accepting PayPal proves nothing about the firm. Our guide on how to choose a crypto exchange covers the criteria in more depth, and our beginner's guide to buying and selling crypto shows where this fits in the bigger picture.
Tax when you sell crypto bought with PayPal
UK. Selling crypto, swapping it for another crypto and paying for goods with it are all disposals. Capital Gains Tax is due when your total gains in the tax year exceed the allowance. According to GOV.UK's Capital Gains Tax rates, the allowance is £3,000 for 2026-27, and the rate is 18% or 24%, depending on your income. PayPal's terms say that notifying HMRC and paying tax is your responsibility. See how UK crypto tax works for the details.
US. Brokers report digital asset sales to the IRS on Form 1099-DA. For sales made in 2025, brokers report gross proceeds and basis reporting is optional. From sales made in 2026, basis reporting is mandatory for covered assets, which are generally those bought after 2025 and held at the broker. The form reports your sales to you and the IRS, but you still work out and report your own gains on your tax return.
PayPal crypto scams to watch for
PayPal's US crypto terms warn about two schemes. The first is pump and dump scams, where fake recommendations push a hyped coin. The second is impersonation, where scammers contact you and pretend to be a PayPal customer support representative.
Treat any request to pay a "broker" or "account manager" through PayPal as a warning sign. The fake trading-robot funnel that ran on this domain until March 2026 passed sign-ups to unlicensed brokers who work this way. Our overview of common crypto scams lists the other warning signs.
Frequently asked questions
Can you withdraw crypto from PayPal to a wallet?
In the UK, not for crypto in your Cryptocurrencies Hub; PYUSD is handled differently. In the US, yes, to your own or another person's wallet, for a network fee.
Does PayPal charge fees to buy crypto?
Yes, for most coins: a transaction fee plus a margin or spread built into the exchange rate. In the UK, buying or selling PYUSD carries no transaction fee, though the rate still includes PayPal's margin.
Is crypto on PayPal protected?
Not by the usual schemes. In the UK it is outside the FSCS and the Financial Ombudsman Service. In the US it is not insured by the FDIC or SIPC.
Do you pay tax on crypto bought with PayPal?
You can. In the UK, Capital Gains Tax applies when your total gains in 2026-27 exceed the £3,000 allowance, and reporting to HMRC is your job. In the US, brokers report sales on Form 1099-DA, but you still work out your own gains on your return.