PayPal has got its full BitLicense from the New York Department of Financial Services, making it the first company to trade in a cryptocurrency.
New York launched its BitLicense program in 2015 to regulate firms that let clients purchase and trade cryptocurrencies in the state.
However, several crypto enthusiasts questioned the regulation, claiming that it may make it more difficult for firms to invest in cryptocurrency.
New York’s DFS Superintendent Adrienne Harris said: “The conditional virtual currency license allows businesses to have well-regulated access to the New York marketplace through partnerships with licensed firms, ensuring that New Yorkers have access to a wide variety of virtual currency products with appropriate consumer protections.”
“With PayPal’s conversion to a BitLicense, the conditional license is now a proven framework for licensure.”
In response, New York suggested a conditional BitLicense in 2020, with a purportedly more efficient process for getting the documents.
Companies are urged to earn a full BitLicense since rules state that those having a conditional license.
PayPal appears to have taken this proposed route since it received a conditional BitLicense in 2020 before obtaining its complete license two years later.
Along with announcing BitLicense approval, PayPal is also introducing various new options for clients to engage with cryptocurrency on the site.
Select customers in the United States (except Hawaii) may now transfer supported cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, into PayPal, as well as move crypto to external wallets and exchanges.
PayPal also claims that customers may send cryptocurrency to friends and family members “with no fees or network costs.”
The company first started letting users buy and sell cryptocurrencies in 2020 — around the same time, it obtained its conditional BitLicense.
It later expanded the functionality last year, adding the ability for users to pay with Bitcoin, Litecoin, and Ethereum. The PayPal-owned Venmo also started supporting cryptocurrency last year.
PayPal also states that consumers may send cryptocurrency to friends and family members “with no fees or network costs.”
Source: The Verge