PayPal will provide up to $50,000 in voluntary Reg E insurance for cryptocurrency transactions conducted by consumers, PayPal Senior Vice President Jose Fernandez da Ponte said in an interview at the Consensus 2023 conference.
PayPal is the first company to pledge to compensate users for any losses incurred due to unauthorized cryptocurrency transfers.
Reg E refers to Regulation E, a U.S. federal statute that provides consumer protections related to “electronic funds transfers” (EFT).
At the end of last month, PayPal announced that it would launch a crypto transfer service for more than 60 million Venmo customers in the United States. Starting next month, Venmo customers can transfer money to PayPal accounts as well as to external wallets and exchanges.
It is reported that in June last year, PayPal began to allow users to send Bitcoin, Ethereum, Bitcoin Cash and Litecoin to external wallets. PayPal acquired Venmo in 2013. (Planet Daily)