Menu Close

PayPal Confirms Development of Crypto Capabilities

The payment processor is also reportedly working on bringing Bitcoin buying and selling features.

PayPal, one of the major online payments giant, has confirmed that it is working to bring crypto capabilities on its platform.

As reported by The Block, the revelations were made in a letter to the European Commission in March, responding to the body’s public consultation on its proposed framework of crypto-assets. “As an innovative FinTech company and by virtue of its mission, PayPal is monitoring the evolution of the crypto-asset space,” the payments company noted.

The letter detailed that PayPal initiated its development in the crypto area since last year when it joined the Libra Association as a member. Notably, Paypal became the first company to quit the consortium followed by Mastercard, Visa, and others.

“PayPal has taken unilateral and tangible steps to further develop its capabilities in this area, and therefore – without questioning the value of the project – took the decision not to participate in the Libra Association and to continue to focus on advancing our existing mission and business priorities to democratize access to financial services,” the payment company added.

Fintech’s interest in crypto

Many major crypto exchanges including Coinbase was already offering users to buy cryptocurrencies using PayPal, but the platform did not offer any exchange services natively. Citing multiple sources, Coindesk last month reported that PayPal was considering adding Bitcoin buying and selling options directly to its customers.

In Europe, Paypal has a massive presence. Licensed in Luxembourg, the company has operations in 31 European jurisdictions, serving around 95 million merchants and consumers. “PayPal is continuously monitoring and evaluating global developments in the crypto and blockchain/distributed ledger space,” the letter added. “PayPal would be supportive of a harmonized approach across EU markets on applicable licensing or authorization requirements.” The California-headquartered company further suggested that the EU should bring clear definitions for crypto assets and thus properly licensing and regulating companies in the industry. It also asked the regulator to bring crypto activity under the AML/CFT requirements.

“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 letter read.

Article is from Finance Magnates