confirmed by PayPal that cryptocurrencies could be used. This was confirmed using a letter PayPal sent to the European Commission. The letter regarded the Framework for the EU and markets related to cryptocurrency.
Recently, Venmo and PayPal were rumored to let users sell and buy #cryptocurrencies directly using the app.
Plans for PayPal and Cryptocurrency
the work of PayPal and how it was developing #Crypto Capabilities. This letter was made and sent to respond to the consultation which was done publicly at the ending of last year and on the creation of the European Union's framework for marketing cryptocurrency assets. From #Ledger Insights, PayPal's letter was made public in June, the same with different other responses as received by the commission.
The crypto asset industry has experience growth substantially over these past years. As told by PayPal to EC. This is why PayPal continues to monitor and check all global developments in the blockchain and crypto distributed ledger space.
Through the letter, the company talked about how it was involved in the #Libra project, which got the ides from Facebook. It signed a non-binding letter with intentions to join hands and act with Libra Association. PayPal clearly stated that as the project has started, it has made tangible and unilateral steps that would aid in the development of more capabilities in the cryptocurrency asset area.
PayPal also made sure it explained to the public that after it left the Libra project, it settled to focus on making their existing business and mission priorities to democratize easier ways to gain financial services.
From this letter, PayPal agrees it has more than three million accounts that are active all around the world. With millions of new users that continue to add annually. The company serves businesses and customers in about thirty-one European jurisdictions. They also have a license to provide payment services and banking in Luxembourg.
Checking the EU framework and assess for cryptocurrency, #PayPal made the EC know that its regulatory framework should let services and products that are innovative to grow in a market that has no regulatory burden. At the same time, provide guidance, clarity with sage guards which would be done with regulation.
In the letter, three key points were stated.
PayPal suggests the EU’s crypto framework needs to have definitions clearly stated on all crypto activities. This is necessary for firms engaged in these situations to be regulated and licensed.
Each firm needs to call for a proper application of an approach that there could be risks. This would also be in line with the principles that underpin EU AML, global standards, and regulation.
All frameworks that are regulatory in Europe has to make sure it is neutral using technology to support competition and innovation in a space that is evolving quickly. The FATF(Financial Action Task Force) stated risk-based approach is necessary to regulate service providers and cryptocurrencies.
Nice article