PayPal has obtained a full BitLicense that allows its users to transfer crypto to external wallets. Here is why this is a gamechanger for the company and its customers.
The BitLicense, introduced in 2015 by the New York Department of Financial Services, is a way to regulate businesses (basically, wallets) that handle crypto exchanges. Obtaining the license has been a challenge for concerned parties leading to a conditional license.
The conditional license is easier to get but businesses are still mandated to eventually get the full BitLicense. It took PayPal two full years to get the complete license after obtaining the conditional version back in 2020.
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The conditional Bitlicense allows a company to carryout crypto activities as long as it works with an authorized BitLicensee, which is a firm that holds the full license especially for structure, capital, systems, personnel, or any other support needed.
Now that PayPal has the full BitLicense, it has announced new features that ‘select US’ users can start using right away including:
- Transferring supported coins into payPal
- Moving crypto from PayPal to external crypto addresses including exchanges and hardware wallets
- Sending crypto to family and friends on PayPal in seconds, with no fees or network charges to send or receive.
According to its press release, it is the first company to convert the conditional BitLicense to a full BitLicense. It has also set a precedence that the structure actually works, as Superintendent Adrienne Harris of the New York State Department of Financial Services (DFS) noted.
Collaboration between regulators and key players in the crypto industry is the best way to make it more inclusive.
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