Regulatory compliance is key, said PayPal CEO Dan Schulman.
The cryptocurrency industry cannot flourish without working hand in hand with regulators, according to PayPal CEO Dan Schulman
On Wednesday, Schulman spoke to Squawk Box host Andrew Ross Sorkin about the cashless era of the global financial industry at the Web Summit online conference .
Schulman also addressed issues related to cryptocurrency regulation and called on the industry to work closely with tax authorities to get more benefits from cryptocurrencies. “There is only one way to solve this. And that is to work hand in hand with regulators,” he argued.
Schulman went on to say that regulatory compliance is essential for providing services in the crypto industry:
“These basic skills include regulatory compliance, a thorough understanding of security, risk management, financial controls, FinCEN controls, anti-money laundering controls. Without these, you have no chance in this area. […] You have to have them . ”
Schulman said the company invested “a substantial amount” in compliance. He explained that PayPal was the first company to a conditional BitLicense by regulators in New York received has. “We’re doing this hand in hand with regulators, and it’s the only way,” Schulman said.
“Strong regulatory oversight is extremely important and I have no problem with it at all,” he said. Schulman also noted that PayPal has close ties with regulators because the company wants to prevent illegal activities, such as money laundering, while maintaining a level of financial health.
In October, PayPal officially announced that the company would enable customers to buy, hold and sell cryptocurrencies. For this purpose, the company supports the cryptocurrencies Bitcoin ( BTC ), Ether ( ETH ), Bitcoin Cash ( BCH ) and Litecoin ( LTC ), which are to be introduced with PayPal’s digital wallet. PayPal then launched its crypto service in the United States and customers could trade up to $ 20,000 a week.
Schulman has previously claimed that PayPal’s crypto services would bring greater benefits to cryptocurrencies .