{"id":94360,"date":"2020-10-21T18:27:22","date_gmt":"2020-10-21T15:27:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/regulation-will-keep-paypals-new-crypto-services-from-looking-like-crypto-for-now\/"},"modified":"2020-10-21T18:27:22","modified_gmt":"2020-10-21T15:27:22","slug":"regulation-will-keep-paypals-new-crypto-services-from-looking-like-crypto-for-now","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/regulation-will-keep-paypals-new-crypto-services-from-looking-like-crypto-for-now\/","title":{"rendered":"# Regulation will keep PayPal&#8217;s new crypto services from looking like crypto for now"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a232969b80d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a232969b80d0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/regulation-will-keep-paypals-new-crypto-services-from-looking-like-crypto-for-now\/#The_devil_in_the_details\" >The devil in the details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/regulation-will-keep-paypals-new-crypto-services-from-looking-like-crypto-for-now\/#Crypto_is_as_crypto_does\" >Crypto is as crypto does<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Regulation will keep PayPal&#8217;s new crypto services from looking like crypto for now <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5ldS1jZW50cmFsLTEuYW1hem9uYXdzLmNvbS9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTAvNDNiMzhhNGYtODNjOC00YjJkLThjZDYtNjUwMjA3ODIwNDA5LmpwZw==.jpg\" \/><\/p>\n<div data-v-5a136f3a=\"\">Earlier today,\u00a0PayPal confirmed\u00a0that it would be adding crypto payments to its global platform over coming months. <\/p>\n<p>The rollout will begin in the United States, where PayPal also became the\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.dfs.ny.gov\/reports_and_publications\/press_releases\/pr202010211\">first recipient<\/a>\u00a0of the New York Department of Financial Services&#8217; (NYDFS) conditional Bitlicense, a program that the\u00a0regulator announced\u00a0this past summer.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_devil_in_the_details\"><\/span>The devil in the details<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> is huge for crypto, PayPal will be under intense scrutiny. The nature of the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.dfs.ny.gov\/apps_and_licensing\/virtual_currency_businesses\/gn\/req_comments_prop_framework\">conditional Bitlicense<\/a> is that conditional licensees have to pair off with firms that have full Bitlicenses (in this case, Paxos) who will act as mentors of a sort. Per the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/govt.westlaw.com\/nycrr\/Document\/I85908c6e253711e598dbff5462aa3db3?viewType=FullText&amp;originationContext=documenttoc&amp;transitionType=CategoryPageItem&amp;contextData=(sc.Default)&amp;bhcp=1\">NYDFS<\/a>, conditional licensees also &#8220;may be subject to heightened review, whether in regard to the scope and frequency of examination or otherwise.&#8221; <\/p>\n<p>The conditional license lasts for two years, and its renewal or upgrade to full Bitlicense status is wholly contingent on Superintendent Linda Lacewell&#8217;s decision.<\/p>\n<p>Representatives for PayPal declined to comment on what form heightened scrutiny will take, instead directing Cointelegraph to speak with NYDFS. In turn, representatives for NYDFS declined to specify what &#8220;heightened review&#8221; might mean for PayPal beyond the vague statutory language already available. <\/p>\n<p>Meanwhile, representatives for Paxos declined to comment on their role in PayPal&#8217;s conditional Bitlicense. Which is to say, all three of these organizations made great efforts to publicize this morning&#8217;s news without going into detail on the regulatory arrangement. Their disinterest in doing so when pressed is concerning.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_is_as_crypto_does\"><\/span>Crypto is as crypto does<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While nobody is being transparent about the specific hoops that PayPal \u2014 which has well over 340 million users worldwide \u2014 will have to jump through to satisfy regulators, the firm is clearly going to have to do everything in its power to make crypto behave unlike crypto on its platform, beyond the customer data gathering that PayPal has always done.\u00a0<\/p>\n<p>PayPal&#8217;s wallet will be not only custodial, but siloed. Per the firm&#8217;s cryptocurrency\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.paypal.com\/us\/smarthelp\/article\/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete\">FAQs<\/a>, users will not hold private keys, nor will they be able to move their holdings to other wallets:\u00a0<\/p>\n<blockquote><p>&#8220;Currently, you can only hold the Cryptocurrency that you buy on PayPal in your account. Additionally, the Cryptocurrency in your account cannot be transferred to other accounts on or off PayPal.&#8221;<\/p><\/blockquote>\n<p>So what does that mean? Not only are coins held on PayPal most certainly not your coins, but also, this may be the standards that big firms will have to abide by in order to dabble in crypto.\u00a0<\/p>\n<p>There&#8217;s been talk for some time of regulatory &#8220;white lists,&#8221; i.e. crypto exchanges and firms looking to comply with stringent regulations will only be able to transact with <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved wallet addresses. That practice has not yet gone into law. <\/p>\n<p>With PayPal what we may be looking at is regulators allowing crypto on major platforms only when it has no chance of going to other platforms, which is more aggressive than a white list. That is, full dependence on third parties, zero threat of peer-to-peer transfers, and zero chance of interacting with people who wouldn&#8217;t already be able to get PayPal accounts. Which, ultimately, isn&#8217;t really crypto. At least for now.\u00a0<\/p>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/regulation-will-keep-paypal-s-new-crypto-services-from-looking-anything-like-crypto\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Regulation will keep PayPal&#8217;s new crypto services from looking like crypto for now &#8221; Earlier today,\u00a0PayPal confirmed\u00a0that it would be adding crypto payments to its global platform over coming months. The rollout will begin in the United States, where PayPal also became the\u00a0first recipient\u00a0of the New York Department of Financial Services&#8217; (NYDFS) conditional Bitlicense,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":94361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/43b38a4f-83c8-4b2d-8cd6-650207820409.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[76603,76604,76605,76574,74355,3885,70934],"class_list":["post-94360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitlicense","tag-nydfs","tag-paxos","tag-paypal","tag-adoption","tag-new-york","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=94360"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/94360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/94361"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=94360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=94360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=94360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}