In a recent letter to the European Commission (EC), Paypal, the fintech giant, has revealed its resolution on working and further developing cryptocurrency capabilities. The letter was a response to the public consultation on the EU framework for markets in cryptocurrency. Payments giant Paypal told the EC. ” The crypto-asset industry has experienced substantial growth over the past few years. As such, Paypal is continuously monitoring and evaluating global developments in the crypto and blockchain/distributed ledger space.”
Paypal partnering up with Paxos Cryptocurrency Brokerage
According to the recent reports, Paypal has entered into an agreement with Paxos, an application programming interface(API) brokerage for providing cryptocurrency services to its active 325 million accounts worldwide. This partnership would make Paypal one of the leading mainstream companies allowing its customer cryptocurrency purchases and several other services. Although it’s not clear which cryptocurrencies will be accepted, sources of Coindesk suggest Coinbase, along with Bitstamp were some of the names being discussed as likely to be involved.
In the letter addressed to EU, Paypal has asked the EU to make a framework that will allow them to provide innovative crypto assets products and services while simultaneously molding the framework to provide clarity, guidance, and safe-guards. Three critical points mentioned by Paypal were:
- Clearly defining various crypto activities to ensure that companies are enganging in activities that are completely regulated and licensed.
- The company mentioned ” a proper application of a risk-based approach, in line with the principles underpinning existing EU AML regulations and global standards.
- Last but not the least, Paypal recommended any regulatory framework should be construed in a way to provide technology support innovation and competition in this fast-evolving space.
This brings a new horizon of opportunities since a company as big as Paypal has finally decided to enter the cryptocurrency market. And a company whose CEO in 2018 claimed Bitcoin to be a scam and just two years later decided to offer bitcoin services, certainly paves a pathway for global development in blockchains and cryptocurrency.