Kraken, the cryptocurrency exchange, is gradually introducing support for deposits in euros and British pounds via PayPal for its users in the United Kingdom and Europe. This information comes from a reliable source familiar with the new feature.
Kraken and PayPal Partner: Kraken’s Phased Rollout of PayPal Deposits in the UK and Europe
A recent email sent to Kraken users in the UK, as seen by The Block, confirms that PayPal is now an accepted method for funding user accounts. According to the email, users can utilize their PayPal balance, linked bank accounts, or payment cards associated with their PayPal accounts to transfer up to £1,000 ($1,250) daily.
It’s important to note that this PayPal funding option is currently exclusive to the Kraken mobile app, which received an update just two days ago. Deposits made through PayPal are processed almost instantly but come with a 2.4% fee. This option complements the existing deposit methods of Plaid and wire transfers available on the platform.
Understanding the Mechanics of PayPal Deposits
Kraken users who wish to fund their accounts using PayPal are required to undergo verification at either the Intermediate or Pro level. This verification process ensures that the name registered on their PayPal account matches the one on their Kraken account. Furthermore, users must be residents of either the United Kingdom or Europe, with the exception of Hungary and Croatia, as specified in a support page detailing this new feature.
The process of depositing funds is relatively straightforward. Users begin by selecting their preferred currency, either EUR or GBP, on the deposit screen. Subsequently, they connect their PayPal account. Once the accounts are linked, users can opt for PayPal as their deposit method, input the desired deposit amount, and then confirm to initiate the deposit. The deposited funds typically become available for withdrawal almost instantly, but please note that there may be fees associated with these transactions, which can vary depending on your geographical region.
It’s important to be aware that a seven-day hold period applies to withdrawals. This hold applies to any assets, including cash or cryptocurrency, equivalent to the deposited amount. However, it’s important to note that this withdrawal hold does not affect your ability to engage in trading activities.
Additionally, Kraken is in the process of revamping its main platform, introducing a new user interface that will replace the older “Kraken Classic” trading platform, as indicated on the site’s login page. Beyond this, Kraken also offers an advanced trading platform known as Kraken Pro, along with an NFT marketplace for users interested in non-fungible tokens.
Kraken is a United States–based cryptocurrency exchange, founded in 2011. It was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and is reportedly valued at US$10.8 billion, as of mid-2022. The company has been the subject of several regulatory investigations since 2018, and has agreed to cumulative fines of over $30 million to resolve the disputes.