PayPal stops developing stablecoins amid regulatory pressure
Due to the continuous regulatory assault on the cryptocurrency industry, PayPal, a leading provider of financial technology, has chosen to postpone the launch of its stablecoin. After carefully observing how the legal environment is changing, the business has chosen to hold off on pushing forward with its stablecoin project.
Partner Paxos is being looked into by the NYDFS
On its stablecoin project, PayPal partnered with Paxos, a cryptocurrency company that creates Binance’s BUSD stablecoin. However, the New York Department of Financial Services is now looking into Paxos. Despite this setback, a PayPal spokeswoman said the business is still dedicated to collaborating closely with authorities on the creation of its stablecoin.
The CFPB is also investigating PayPal.
In addition to regulatory difficulties, the U.S. Consumer Financial Protection Bureau is apparently looking into PayPal. Despite these difficulties, the business is adamant about continuing to develop the stablecoin and has vowed to cooperate closely with authorities.