Earlier today, PayPal confirmed that it will add cryptocurrencies to its global platform in the coming months.

The rollout will begin in the United States, where PayPal also became the first recipient of the New York City Department of Financial Services, or NYDFS, the conditional Bitlicense program announced by the regulator last summer.

The devil is in the details
While cryptocurrency news is very important, PayPal will be investigated. The conditional nature of Bitlicense is that conditional licensees must cooperate with companies with full Bitlicense licenses (in this case Paxos) that will act as mentors. According to NYDFS, conditional licensees may also be subject to a thorough review, whether it concerns the scope and frequency of the review or otherwise.

The conditional license is valid for two years, and the renewal or renewal of it to full Bitlicense status is entirely dependent on the moderator’s decision, Linda Laswell.

PayPal officials declined to comment on how stricter controls could be taken, instead instructing Cointelegraph to speak to NYDFS. In turn, representatives of NYDFS refused to indicate what a “thorough analysis” would mean for PayPal, in addition to the already vague legal wording.

Meanwhile, Paxos representatives declined to comment on their role in Bitlicense on condition of PayPal. This means that the three organizations did their best to spread the news this morning without going further into the organizational structure. Their lack of interest in this when it comes to pressure is worrying.

Cryptography is an act of cryptography
Although no one knows exactly which rings PayPal – which has over 340 million users worldwide – must jump in to meet regulatory requirements, it is clear that the company must do everything necessary to get crypto to do the opposite. to cryptocurrencies. … It’s a different platform than the customer data collection that PayPal has always done.

PayPal wallet will not only be secure but also isolated. According to the company’s popular cryptocurrency question, users will not be able to store private keys and will not be able to transfer assets to other wallets:

At this time, you can only store the cryptocurrency you purchase from PayPal in your account. In addition, the cryptocurrency in your account cannot be transferred to or outside of other PayPal accounts. ”
So what does this mean? PayPal coins are stored not only in your coins, but also in that it can be a standard that large companies must follow in order to participate in cryptocurrencies.

There has been talk of approval lists for quite some time now, which means that cryptocurrency exchanges and companies that want to comply with strict rules will only be able to process approved wallet addresses. This practice is not yet enshrined in law.

In the case of PayPal, we may see that regulators only allow coding on large platforms when they do not have the ability to migrate to other platforms, which is much more aggressive than whitelisting. This means complete dependence on third parties, no peer-to-peer threat, and zero ability to interact with people who actually cannot have PayPal accounts, which in the end is not a real cryptocurrency. At least for now.

Source: CoinTelegraph