PayPal CEO Asks the Crypto Industry to Collaborate with Regulators

PayPal CEO, Dan Schulman believes that there is no other way for the cryptocurrency industry to prosper without collaborating with regulators.

On December 2, Schulman joined the Web Summit online to discuss the ‘cashless era’ of the global financial industry with Squawk Box presenter Andrew Ross Sorkin.

As part of the discussion, Schulman discussed issues connected with the regulation of cryptocurrencies. He asked the industry to work closely with financial authorities to bring more utility to cryptocurrencies. There is only one way to address this, and that is to work hand in hand with regulators, he claimed.

Schulman kept on saying that regulatory compliance is critical to providing services in the crypto industry. Part of those critical capabilities is a full understanding of security, risk management, financial controls, FinCEN controls, and AML controls. Without that, you have no way to be in this arena. 

Schulman said the company invested a massive amount in regulatory compliance. Besides, he noted that PayPal became the first company to obtain a conditional BitLicense from regulators in New York. Schulman argued that they are doing this hand in hand with the regulators, and it is the only way to do it.

Schulman asserted that PayPal has strong relationships with regulators because it intends to prevent illicit practices like money laundering. Meanwhile, it aims to provide some degree of financial health.

PayPal will offer payments in cryptocurrencies from next year

In October 2020, PayPal officially broke the news about the company’s plans to introduce the purchase, custody, and sale service of several cryptos. The cryptos include Bitcoin, Ether, Bitcoin Cash, and Litecoin directly with PayPal digital wallet. Subsequently, PayPal implemented its cryptocurrency service in the United States, allowing clients to trade for up to $20,000 per week.

PayPal is one of the biggest global payment providers. It has 346 million active accounts and $222 billion in processed volume in the second quarter of 2020. It was one of the original founding members of the Libra association, although it subsequently withdrew after its regulatory pressure increased for the project.

At the beginning of this year, rumors of its integration into the world of cryptocurrencies emerged. However, the company is often criticized in cryptocurrency circles due to perceived unfair practices and the degree of control it has within its network.

Schulman previously claimed that PayPal’s cryptocurrency services would eventually increase the utility of cryptocurrencies.