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If PayPal is truly pursuing the market for cryptocurrency transactions, I anticipate that these retail investors will face a day of complete loss, and that could lead to significant troubles.
Moreover, how will PayPal assist its new traders in fulfilling their tax obligations? It's important to note that in the United States, every cryptocurrency transaction is a taxable event, and the Internal Revenue Service (IRS) has already sought extensive transaction data from major platforms like Coinbase.
In comparison to stock trading platform Robinhood, the author also points out that PayPal's new service doesn't allow users to withdraw or deposit Bitcoin. Instead, users can only buy, sell, or hold cryptocurrencies through their PayPal accounts, and the cryptocurrencies in the account cannot be transferred to another user's account. This means that although PayPal seems to open a new door, transactions on the platform still revolve around fiat currencies.
Jerry Brito, the Executive Director of the U.S. think tank Coin Center, believes that PayPal might be launching cryptocurrency services to cater to user demand and may wish to avoid cryptocurrency transfer services to steer clear of regulatory gray areas. Jerry Brito highlights that while there are methods for businesses to comply with the Financial Action Task Force's (FATF) transfer rules (Travel Rule), the relevant measures are not fully in place. Therefore, for PayPal, prohibiting the transfer of cryptocurrencies and assuming regulatory risks is the simplest approach. |
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Post time 27-12-2023 05:55:27