The EC letter, sent in March, stresses PayPal’s support for a harmonized EU approach to licensing, calling for a “clear set of definitions” on various Crypto activities and a technology-neutral approach to regulation.
The company also has mentioned that Blockchain and Crypto assets could help achieve greater financial inclusion and help reduce and eliminate some of the pain-points that exist today in financial services.
It seems that the PayPal rumor is indeed true and least to an extend. We have yet to see PayPal actually releasing a press confirming the launch of BTC and other digital assets exchange.
“The regulatory framework should allow for innovative products and services to be brought to market without undue regulatory burden while simultaneously providing regulatory clarity, guidance, and safeguards,” the company said.
Three key points were specified. Firstly, PayPal proposed the EU’s Cryptosystem ought to have “a clear set of definitions on different Crypto activities … to guarantee that companies locked in in such exercises are appropriately authorized and regulated.” Besides, the company called for “an appropriate application of a risk-based approach, in line with the standards supporting existing EU AML direction and worldwide standards,” and finally “any administrative system in Europe ought to endeavor to be technology-neutral to back development and competition in this fast-evolving space,” the company depicted. The Financial Action Task Force (FATF) suggests a risk-based approach to controlling Cryptocurrencies and related benefit suppliers.
Even though, this is what the insiders of PayPal claim, this report does not yet confirm that PayPal has Crypto plans to launch an exchange or any trades in general. PayPal is about to lose eBay, which has been a massive source of revenue for PayPal or the decades. PayPal will now be desperate for a new revenue stream. What better industry to get in to? One of the biggest growing industries right now is the Cryptocurrency.
Newcomers like Cash App, which are already giving PayPal a run for its money, let alone how much money Cash App has made by selling money to its costumers. And the existential threat of the Crypto world in itself to businesses like PayPal is a strong motive.
So PayPal faces the choice, evolve, or go extinct. While still there is not much information on when PayPal will launch these services, what Cryptos PayPal going to sell, which regions will the services will be available or etc.
But one thing seems certain; the rumor was true and PayPal will be going to be offering Crypto. This will be tremendous news and would have huge effects on markets it becomes actual, considering the fact that PayPal claims to have 320 million active costumers worldwide.
To sum up – Last month, PayPal and Venmo, a mobile payment application possessed by PayPal, were rumored to before long offer coordinate Crypto buying and offering. PayPal, in any case, isn’t new to the Crypto space. In 2018, the company recorded an obvious for an assisted Cryptocurrency exchange framework. Its CEO, Daniel Schulman, too said in November that he possessed Bitcoin.