PayPal reported on plans to expand its crypto capabilities
In a letter sent in March, PayPal reports that it is "monitoring the evolution of the cryptoactivity space" and has taken "narrowly focused and concrete steps to further enhance capabilities in this area. These actions were prompted, among other things, by the announcement of the Libra project in June 2019.
PayPal was one of the original members of Libra, but in October 2019, together with Mastercard and Visa left the project.
This letter was part of a public consultation initiated by the European Commission in December 2019 in an effort to obtain feedback on the regulatory framework for crypto assets.
PayPal claims to support these plans. The company's representatives note that blockchains and crypto assets can "increase the availability of financial services and reduce or eliminate certain pain points in existing payment services.
PayPal wants the European Commission to provide clear definitions of the different types of crypto activities, which will ensure adequate protection for consumers and investors. In addition, the company has proposed that crypto activities should be introduced within the applicable anti-money laundering regulations.
The company holds a banking and payment services licence issued in Luxembourg. This enables it to serve 95 million clients in 31 countries in Europe.
PayPal has been present in the cryptocurrency space since 2014. Through partnerships with several processing services, including SatoshiPay and Coinbase, the company has offered merchants the opportunity to accept bitcoin as payment.