- PayPal publicly stated in its Q3 financial report with the SEC that it had received a subpoena.
- The FCA of the UK granted PayPal a license to offer crypto services on October 31.
The U.S SEC has issued a subpoena against payment processing behemoth PayPal in relation to its stablecoin pegged to the U.S. dollar. On November 2nd, PayPal publicly stated in its Q3 financial report with the SEC that it had received a subpoena from the SEC’s Enforcement division over its PYUSD stablecoin.
According to the company, a subpoena was sent to PayPal on November 1 requesting the production of specific records. The payments firms stated that it is cooperating on this with the SEC.
Approximately three months have passed since PayPal introduced its PYUSD stablecoin in early August. Paxos Trust, the stablecoin’s issuer, backs it with deposits in U.S. dollars, short-term Treasury, and other cash equivalents. PYUSD utilizes the Ethereum blockchain and is designed to process Web3 and digital payments.
A Paxos spokesperson claims that PYUSD has been well received since its release two months ago, boasting a market valuation of $150 million.
Challenging Environment
As a result of prominent exchanges offering the stablecoin shortly after its inception, PayPal USD saw a meteoric spike in use. Earlier this autumn, PayPal announced that its Venmo mobile payment service will soon support the PYUSD stablecoin, letting users buy PYUSD and transfer it to friends and family.
PayPal has been making strides with crypto efforts worldwide, in addition to its U.S. expansion. The Financial Conduct Authority (FCA) of the UK granted PayPal a license to conduct cryptocurrency services on October 31.
Also, the most recent SEC lawsuit against PayPal is more proof that operating a cryptocurrency business in the United States is challenging.
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