Compliance is key if you want to play the game, says PayPal CEO Dan Schulman.
There is no other way for the cryptocurrency industry to thrive without working hand in hand with regulators, PayPal CEO Dan Schulman believes.
On Dec. 2, Schulman joined the Web Summit online conference to discuss the cashless era of the global financial industry with Squawk Box host Andrew Ross Sorkin.
As part of the discussion, Schulman addressed issues related to cryptocurrency regulation, calling on the industry to closely collaborate with financial authorities to bring more utility to crypto. “There is only one way to approach this, and that is working hand in hand with regulators,” he argued.
Schulman went on to say that regulatory compliance is foundational for providing services in the crypto industry:
“Part of that foundational capabilities are regulatory compliance, full understanding of security, risk management, all of the financial controls, FinCEN controls, AML controls. Without that, you really have no way that you should be in this arena. […] You must have those.”
Schulman said that the company invested a “tremendous amount” in regulatory compliance, noting that PayPal became the first firm to get a conditional BitLicense from regulators in New York. “We’re doing this hand in hand with regulators, and it’s the only way to go about doing this,” Schulman argued.
“Strong regulatory oversight is extraordinarily important and I’ve got zero issue with that,” the exec said. Schulman stated that PayPal has strong relationships with regulators because it aims to prevent illicit practices like money laundering while providing some degree of financial health.
In October 2020, PayPal officially broke the news on the company’s plans to introduce the ability to buy, hold and sell a number of cryptos including Bitcoin, Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) directly with the PayPal digital wallet. PayPal subsequently rolled out its crypto service in the United States, allowing clients to trade up to $20,000 per week.
Schulman has previously claimed that PayPal’s crypto services will eventually increase the utility of cryptocurrencies.