Very soon, we are likely to have cryptocurrency buying and selling services on the Paypal platform. While there were unofficial statements, about Paypal rolling out and launching cryptocurrency buying and selling services, Paypal did not comment regarding the same then back in June 2020.
Back in 2019, the European Commission opened a consultation regarding regulation of cryptocurrencies and digital assets. The consultation was meant to come up with the European Union’s Regulatory Framework for Crypto Assets.
Paypal expressed their support to the European Regulatory Framework. Further acknowledged that cryptocurrencies and blockchain systems should help improve on financial inclusion, eventually helping in the process of eliminating the pain points, which are existing in traditional financial services.
Paypal clarified stating that these innovations will continue to evolve. And, that thoughtful regulations should encourage innovation, thereby promoting clarity which will help the industry to thrive and grow.
In a thought about new entrants, Sydney Ifergan, the crypto expert tweeted: “Everyone getting into cryptocurrency and why not with Paypal? They have all the machinery and customer base to make crypto move easy than ever.”
The online payment giant stated to the commission that they need to set clear definitions for the different crypto-related activities to provide for sufficient investor and consumer protection.
PayPal have further suggested to the commission that they bring in crypto-related activities to be tried within the scope and ambit of the already existing EU’s anti-money laundering regulations.
Further, recommending that regulatory frameworks in Europe be framed a way to ensure technological neutrality to support innovation and competition in the fast evolving space.
PayPal made a mention to how they started off with their developmental activities in the cryptocurrency space last year when they joined Facebook’s Libra Association during June 2019 concerning blockchain and cryptocurrency. Further mentioned about how they left the association in October 2019.
PayPal in order to ensure their neutrality to the cryptocurrency space clarified they dropped out of the Facebook-led association to focus on their already existing missions and business priorities, thereby progressing to democratize the access to financial services.
It is not new for Fintech companies to be entering the cryptocurrency space. Several partnership projects between traditional fintech projects and crypto companies are becoming an everyday news. If Paypal are seriously prospecting to provide their customers with cryptocurrency services, there is nothing like it. However, we need to see how the transaction costs are going to be, with Paypal, the costs are a bit on the higher end for all practical reasons though.
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