PayPal Leaves UK for Eurozone
PayPal is moving its British base for all European transactions to Luxembourg, where it will be regulated under EU rather than UK rules.
Currently, PayPal (Europe) Ltd. is the service provider for PayPal in the EU. PayPal (Europe) Ltd. is a UK company regulated and authorised by the Financial Services Authority (FSA) in the UK …
From 2 July 2007, a new PayPal company, PayPal (Europe) S.Ã r.l. & Cie, S.C.A. (PayPal Luxembourg), will become the service provider for PayPal in the EU. This is a Luxembourg entity regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg equivalent of the FSA. PayPal Luxembourg will provide the PayPal service throughout the EU.
This is an ominous move for British users, since PayPal is now swallowed up in the eurozone currency area of which the UK is not a member.
This represents a downgrading of the service and yet another euroization of British business.
