The digital payments giant PayPal is reportedly pausing work on its stablecoin following news that its partner in the effort is under investigation by a New York regulatory agency.
PayPal, which just released its fourth quarter earnings for 2022 on Thursday, was set to debut its stablecoin in the next few weeks, but is no longer going through with the release, Bloomberg ລາຍງານວ່າ. The payment provider’s decision comes after Paxos, a stablecoin developer that has previously partnered with Binance ແລະ Mastercard, was reported on Thursday by CoinDesk to be in the crosshairs of the New York Department of Financial Services, a niche branch of state government and a key player among U.S. cryptocurrency regulators. Reasons for the investigation were unclear.
When asked for comment, a spokesperson for PayPay told Fortune that the company was “exploring a stablecoin.”
“If and when we seek to move forward, we will, of course, work closely with relevant regulators,” the spokesperson said.
A spokesperson for Paxos did not immediately respond to ໂຊກດີຂອງ request for comment. A spokesperson for the Department of Financial Services declined to comment on ongoing investigations.
A pause on PayPal’s stablecoin development follows a suite of recent regulatory action against crypto companies. That acceleration prompted it to stand back from pursuing its own coin, according to an anonymous source who spoke to Bloomberg.
On Thursday, the Securities and Exchange Commission announced that Kraken, the third largest cryptocurrency exchange by trading volume, agreed to a ປັບ ໄໝ 30 ລ້ານໂດລາ after the government accused the exchange of selling unregistered securities through its staking business, which lets users put their cryptocurrency in escrow to help validate blockchain transactions. In exchange, token holders receive a certain percentage yield. As part of the settlement, Kraken also agreed to remove its staking feature from its platform in the U.S.
And in late January, Custodia, a crypto-focused bank in Wyoming, was ປະຕິເສດການເປັນສະມາຊິກ in the Federal Reserve System, which would have let the bank make use of tax benefits, investment opportunities, and other conveniences.
PayPal has made a concerted push into crypto in the past two years, allowing users to buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin through its digital wallet. In January of 2022, it ປະກາດແຜນການຂອງຕົນ to explore the development of its own stablecoin. This was before crypto behemoths like Celsius, Voyager, and most infamously FTX collapsed and went bankrupt in the following months.
On Thursday, PayPal CEO Dan Schulman, who presided over the company as it made its splash into crypto, ປະກາດແຜນການຂອງລາວ to retire at the end of 2023.
ເລື່ອງນີ້ໄດ້ຖືກ ນຳ ສະ ເໜີ ໃນເບື້ອງຕົ້ນ fortune.com
ເພີ່ມເຕີມຈາກ Fortune:
5 ຄວາມຮີບຮ້ອນທີ່ເຈົ້າອາດຈະມີລາຍໄດ້ຫຼາຍກວ່າ 20,000 ໂດລາຕໍ່ປີ, ທັງຫມົດໃນຂະນະທີ່ເຮັດວຽກຈາກເຮືອນ
5 ຄວາມຜິດພາດທົ່ວໄປທີ່ສຸດທີ່ຜູ້ຊະນະຫວຍເຮັດ
ນີ້ແມ່ນເງິນທີ່ເຈົ້າຕ້ອງການເພື່ອຫາເງິນຕໍ່ປີເພື່ອຊື້ເຮືອນ 400,000 ໂດລາ
ພາສີເສດຖີ: ຄົນຮັ່ງມີທີ່ສຸດສາມາດຈ່າຍໄດ້ພາຍໃຕ້ແຜນການໃຫມ່ຂອງ Biden ແລະມັນຫມາຍຄວາມວ່າແນວໃດສໍາລັບໃບເກັບພາສີຂອງເຈົ້າ
Source: https://finance.yahoo.com/news/paypal-just-paused-plan-release-225317915.html