PayPal gets Bitlicense and starts crypto service

NY DFS announced Paypal to be the first approved entity for BitLicense

This announcement is a big step for PayPal, cryptocurrencies, and the regulatory scene. The FinTech giant with its 346 million active accounts and 26 million merchants plans to offer its customers the possibility of receiving cryptocurrencies in their wallets and thus pay at merchants from the beginning of 2021. The new service will be provided on the regulatory basis of the NY Department of Financial Services (DFS) BitLicense.

Paytech license statistics

The PayTech Papers – Regulatory Challenge in Fighting Cybercrime

The revised Payment Services Directive (PSD2) to regulate payment services throughout the EU and EEA came into force in January 2018 and officially kicked-off the “Open Banking Era” with FinTech unicorns TransferWise, Revolut, Monzo, or N26 leading the pack. The number of licensed PayTechs in the EEA exploded as statistics published in July 2020 shows. Unfortunately, the number of unregulated and therefore unauthorized acting PayTechs specializing in scams and cybercrime also exploded.