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The big deal about PayPal offering cryptocurrencies like $BTC, $ETH, $LTC and $BCH is that they have to back every single coin at the same amount and currency as they sell it to customers (even when you can't withdraw em). Why is that? Let me explain: 1/3
2/3 Paypal and their custodian Paxos are operating under a NY Bitlicense. That's a regulatory framework necessary to operate in the state of New York.
See this press release:
https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202010211
It says that Paxos is PayPal's custodian operating under Bitlicense.
See this press release:
https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202010211
It says that Paxos is PayPal's custodian operating under Bitlicense.
3/3 The Bitlicense regulatory framework has very clear requirements when it comes to custody of customer assets. It is published here:
https://govt.westlaw.com/nycrr/Document/I85908c7d253711e598dbff5462aa3db3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1
It says under 200.9:
https://govt.westlaw.com/nycrr/Document/I85908c7d253711e598dbff5462aa3db3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1
It says under 200.9:
But of course, you should not hold BTC in an exchange or any other place where you don't control the key. Learn what it takes to hodl BTC, ETH, LTC, BCH or XTZ securely in self custody and do it.
