PayPal CEO calls on crypto industry to work with regulators
Compliance is key, says PayPal CEO Dan Schulman.
The crypto-currency industry cannot continue to thrive without working hand in hand with regulators, says PayPal CEO Dan Schulman.
On Wednesday, Schulman spoke to Squawk Box moderator Andrew Ross Sorkin about the cashless era of the global financial industry at Bitcoin Code the online conference Web Summit.
Schulman also addressed the issues surrounding the regulation of crypto-currencies and called on the industry to work closely with tax authorities to gain more value from crypto-currencies. „There is only one way to solve this. And that is to work hand in hand with the regulators,“ he argued.
Schulman went on to say that regulatory compliance is fundamental to providing services in the crypto industry
„These basic skills include regulatory compliance, a comprehensive understanding of security, risk management, financial controls, FinCEN controls, anti-money laundering controls. Without these you don’t stand a chance in this area. […] You have to have them.
Schulman said that the company invested a „substantial amount“ in compliance. He explained that PayPal was the first company to receive a conditional BitLicense from New York regulators. „We are doing this hand in hand with the regulators, and it is the only way,“ Schulman said.
„Strong regulatory oversight is extremely important and I have no problem with it at all,“ he continued. Schulman also noted that PayPal maintains close relations with the regulators because the company wants to prevent illegal activities, such as money laundering, while ensuring a certain level of financial health.
In October, PayPal officially announced that it wanted to enable customers to buy, hold and sell crypto-currencies. To this end, the company supports the crypto-currencies Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), which will be introduced with PayPal’s digital wallet. PayPal subsequently launched its crypto service in the United States and customers could trade up to $20,000 per week.
Schulman has previously claimed that PayPal’s crypto services would bring greater benefits for crypto-currencies.