PayPal Suspends its Upcoming Launch of Stablecoin in the midst of Paxos Investigation

Key Points:Bloomberg claimed PayPal had stopped working on its stablecoin due increased regulatory scrutiny.
This news came just a day after an investigation by the New York Department of Financial Services into Paxos.
Bloomberg reports that PayPal has stopped developing its stablecoin due to industry regulatory concerns. Bloomberg reports that PayPal has stopped developing its stablecoin due to regulatory concerns in the industry. Bloomberg reports that the project was expected to be completed within the next few weeks. The firm also announced that it was working on a stablecoin that would be one-to-one backed by the US dollar. Paxos holds a virtual currency license issued by the New York regulator. This license was given in June after the Terra collapse. It advised stablecoin issuers that they must have separate assets to back their stablecoins. The investigation has been opened by the New York State Department of Financial Services. PayPal suspended development after the revelations of the investigation. This was to better understand the changing regulatory landscape for digital assets, according the article. “We are currently researching a stablecoin and if and whenever we wish to move ahead, we will, of course. cooperate closely with relevant regulators,” the company stated. The Department of Financial Services also granted PayPal a “BItcLicense” in 2013. It was the first company to “transform a conditional BitLicense in to a full one.” We encourage you to do your research before investing.Join us to keep track of news: NewsTags: PayPalPayPal announcedPayPal crypto management overheadPayPal PlansPayPal walletStablecoinstablecoin project