{"id":17533,"date":"2023-02-11T20:15:15","date_gmt":"2023-02-11T20:15:15","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/paypal-puts-stablecoin-plans-on-hold-as-us-regulators-crack-down-on-crypto-industry-bitcoin-news\/"},"modified":"2023-02-11T20:15:15","modified_gmt":"2023-02-11T20:15:15","slug":"paypal-puts-stablecoin-plans-on-hold-as-us-regulators-crack-down-on-crypto-industry-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/paypal-puts-stablecoin-plans-on-hold-as-us-regulators-crack-down-on-crypto-industry-bitcoin-news\/","title":{"rendered":"Paypal Puts Stablecoin Plans on Hold as US Regulators Crack Down on Crypto Industry \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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During the first week of 2023, payment service giant Paypal said it was exploring the launch of a stablecoin. At the time, an executive at Paypal stated that if the company moved forward, it would work closely with financial regulators. However, on Feb. 10, a source noted that Paypal has put the concept on hold for now amid the regulatory scrutiny of the crypto industry.<\/strong><\/p>\n

Paypal Pauses Stablecoin Development as Regulatory Concerns Loom<\/h2>\n

On Jan. 7, 2023, it was reported<\/a> that Paypal was exploring the creation of a stablecoin.\u201cWe are exploring a stablecoin,\u201d a Paypal executive told reporters at the time. \u201cIf and when we seek to move forward, we will, of course, work closely with relevant regulators.\u201d The multinational financial technology company, founded in Dec. 1998, is one of the largest online payment systems in the world.<\/p>\n

However, Paypal appears to have slowed its plans to develop a stablecoin, according to a Bloomberg report<\/a> citing a person with knowledge of the matter. Paypal was also working with Paxos, the stablecoin issuer that is reportedly under investigation by the New York State Department of Financial Services (NYDFS). Nikhilesh De of Coindesk learned<\/a> about the alleged investigation, but was told by an NYDFS spokesperson that the agency could not comment on ongoing investigations.<\/p>\n

Paxos manages two stablecoin projects, a tokenized gold coin, and holds a Bitlicense issued by the NYDFS. There has been a significant crackdown on cryptocurrency businesses following the collapse of FTX. Recently, crypto lender Nexo agreed<\/a> to settle with the U.S. Securities and Exchange Commission (SEC) and several state regulators over its earn product. Nexo paid the regulators $45 million on a \u201cno admit, no deny\u201d basis and ended the program in the United States.<\/p>\n

More recently, Kraken was fined<\/a> $30 million for its staking service program and was forced to stop offering the service to U.S. retail customers. Kraken clarified that it will continue its staking services for customers outside the United States. Founder Jesse Powell is calling on Congress<\/a> to issue clear regulatory guidance and protect retail investors from using offshore services.<\/p>\n

Bloomberg\u2019s Yueqi Yang and Jennifer Surane did not reveal the specific reason for Paypal\u2019s decision to pause its stablecoin plans. The payments giant recently entered<\/a> the cryptocurrency industry by launching<\/a> a wide range of crypto services<\/a> in 2021. Paypal holds an NYDFS-issued Bitlicense and converted its conditional Bitlicense to a full license in June 2022.<\/p>\n

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What do you think about Paypal\u2019s decision to pause their stablecoin plans? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: JHVEPhoto \/ Shutterstock.com<\/em><\/p>\n

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