Bitcoin exchange Coinizy claims that it is able to use PayPal to cash out bitcoins. So far PayPal has been trying to avoid digital currencies.
According to Coinizy, money withdrawal through PayPal takes about 24 hours.
“You may be aware that e-wallet provider PayPal has a long history of hostility towards bitcoin and bitcoin startups, and you might already have heard several cases of bitcoin startups getting their PayPal account closed. However, Coinizy is not subject to such risks, as all PayPal withdrawals are not processed by Coinizy but a third-party Financial Institution with no direct links to bitcoin,” says the company.
In theory such transactions should be free, as Coinizy already charges commission for currency conversion. “A one-time fee of 10 % is applied to the average bitcoin exchange rate when you convert your bitcoins into US dollars by depositing them on Coinizy,” says the “Knowledge Encyclopedia” on the exchange’s website.
Coinizy bitcoin exchange is registered at Water Street in Vancouver, Canada. Some sites called it a “fiat bank”, albeit it is not clear if the company has a license for banking operations. Apart from PayPal cashout, Coinizy offers its customers bitcoin debit cards.
The exchange was founded by Yannick Losbar. According to CryptoTrust, before engaging in bitcoin Yannick worked with “premium rates numbers, phone billing, premium SMS” on a European scale. Besides premium SMS, Losbar created CryptoInvest community on Twitter and cooperated as a news writer with our colleagues at CryptoCoinsNews.
In January PayPal announced the launch of an open payment platform through its subsidiary, which enables US merchants to accept payments in bitcoin via integration with Coinbase. However, the company is unlikely to introduce direct bitcoin payments in the near future, due to potential regulation issues. Earlier this month John Donahoe, chief executive at eBay, said PayPal would be able to accept and integrate several digital currencies. At the same time, he did not confirm that PayPal will start accepting bitcoin.