PayPal, one of the world’s first viable fintech companies, has taken bigger steps into the cryptocurrency offering market place after crypto regulator, the New York State Department of Financial Services (DFS) them granted the first “conditional BitLicense.”
PayPal has been weary of Bitcoin and cryptocurrencies for the longest time, but in recent months has made a shift to be more inclusive and to get in on the growing crypto space. In July a letter from the payments giant to the European Commission hinted that they are developing capabilities in the crypto space.
This latest move from the DFS indicates their crypto inclusion is going global, and is even targeting notoriously difficult jurisdictions, like New York.
New York, once heavily criticised as a difficult place for crypto, has been aiming to soften that approach, according to a promise made by Superintendent of Financial Services Linda A. Lacewell.
“DFS’s approval today follows our June 2020 announcement for a new framework for a conditional Bitlicense to encourage, promote, and assist interested institutions to have a well-regulated way to access the New York virtual currency marketplace in a way that is both timely and protective of New York consumers, through partnerships with New York authorized virtual currency firms,” said Lacewell in a statement.
“DFS will continue to encourage and support financial service providers to operate, grow, remain and expand in New York and work with innovators to enable them to germinate and test their ideas, for a dynamic and forward-looking financial services sector, especially as we work to build New York back better in the midst of this pandemic,” she added.
Now with the DFS’s approval, New York State-chartered Paxos will be able to provide trading and custodial services to PayPal to allow the fintech giant’s 325-plus million customers to buy, sell, and hold cryptocurrency. Four DFS-approved digital assets will be initially available: Bitcoin, Bitcoin Cash, Ether and Litecoin, according to the DFS statement.