PayPal reportedly received a subpoena from SEC about its Stablecoin linked to USD three months after PayPal entered the fray to bring stablecoins to the masses.
PayPal Receives a Subpoena from SEC About Its Stablecoin Linked to USD
Lately, PayPal introduced PYUSD. A stablecoin backed by USD deposits and issued by Paxos Trust Company, at the beginning of August. The company indicated at the time that users in the United States would be able to access the digital currency solution “gradually.” PayPal launched the stablecoin on Venmo in September.
As a result of their dealings with virtual currencies, American authorities have been pursuing an increasing number of Internet corporations, including PayPal. PayPal was the first large U.S. banking institution to introduce stablecoins for payments and transfers.
Despite the fact that the majority of the participants facing regulatory scrutiny are local to the crypto space.
Nevertheless, reports show that the payments behemoth unveiled that it has received a subpoena from the Securities and Exchange Commission (SEC). Concerning its stablecoin linked to the US dollar, according to Reuters.
This Move is Expected to Raise Concerns Among the American Stablecoin Community
Presently, concerns among the American stablecoin community will probably be raised by this move. Meanwhile, stablecoins which are thought to be a more practical type of cryptocurrency for the exchange of value than most volatile tokens are being developed on other continents thanks to businesspeople and regulatory initiatives.
For example, Hong Kong plans to introduce stablecoin regulations by the year 2024. Similar restrictions on the usage of stablecoins have been put in place by the European Union. Where controlled tokens denominated in euros are offered by businesses like Monerium.