Back in 2019, the EU opened a dialogue concerning the development of a policing framework for digital assets or cryptocurrencies. Last month, responses were published, including a letter from payments company PayPal confirming that the firm has developed digital asset capabilities since it pulled out of the Libra Association.
PayPal is among the Libra Association pioneering members, but the payments firm withdrew as regulatory approval of Facebook’s Libra project stalled alongside other major companies. Through the letter to the EU, PayPal stated it is evaluating the development of the cryptocurrency sector; and it has taken “unilateral and tangible steps to further develop its capabilities in this area.”
PayPal’s integration of crypto capabilities to bolster more comprehensive financial inclusion
PayPal’s move to integrate crypto capabilities is a significant development in the cryptocurrency industry. Especially since PayPal will avail the buying and selling of cryptocurrency to its expanding 300 million user base. As per the letter, the payments will support such a regulatory structure. Moreover, the firm noted that blockchain technology and virtual assets could help achieve broader financial inclusion. PayPal noted:
“As these technologies continue to evolve, we believe thoughtful regulation that fosters innovation while promoting clarity can help the industry grow and thrive.”
The global payments company demands the authority to clearly define different crypto-related activities to protect both consumers and investors. Additionally, the firm has proposed to place crypto-related operations within the radar of all the relevant anti-money laundering regulations. However, it urged all regulatory bodies across Europe to be neutral towards technology to bolster and encourage more innovations.
PayPal’s European ambitions
Indeed, PayPal has regulatory clearance to provide banking and payment services in Luxembourg. The company offers its service to individuals and enterprises under 31 European administrations, representing about 95 million tradespeople and consumers.
In conclusion, PayPal has actively participated in the cryptocurrency sector for about six years. Initially, several major crypto exchanges like Coinbase and others were already providing users to buy crypto assets using PayPal. But now, PayPal is seriously planning to offer cryptocurrency services directly to its customers. The California-based company has 300 million active users worldwide and has a huge presence in Europe. The firm has operations in 31 European jurisdictions, serving about 95 million consumers and merchants.