PayPal
Letter Confirms Development of Crypto Capabilities
In a letter sent to the European Commission
in March, PayPal revealed it is “monitoring the evolution of the crypto-asset
space,” and that it has taken “unilateral and tangible steps to further
develop its capabilities in the area.”
PayPal was a founding member of
the Facebook-led Libra cryptocurrency project, before it withdrew in October
2019, along with other payment giants. The letter is significant as PayPal is
reportedly working on offering crypto buying and selling services to its over
300 million users.
The letter came in response to
a public consultation opened in December 2019, as the Commission was looking
for feedback on building an EU framework for cryptoassets. PayPal said it
supported such a framework as blockchain technology and cryptoassets could
help achieve “greater financial inclusion” and help reduce or even eliminate
“some of the pain points that exist today in financial services.”
The letter added:
“PayPal is continuously monitoring and
evaluating global developments in the crypto and blockchain/distributed
ledger space. PayPal would be supportive of a harmonized approach across EU
markets on applicable licensing or authorization requirements.”
The fintech giant suggested the EU should bring clear
definitions for cryptoassets and properly license and regulate companies in
the industry.
