Investigation into Partner Prompts Halt
The investigation into Paxos, a key partner in the project, prompted the suspension of PayPal's stablecoin project. Paxos is officially under investigation by the New York State Department of Financial Services.
In light of the investigation, PayPal has decided to pause its work on the stablecoin to better understand the evolving regulatory landscape for digital assets.
PayPal: "Exploring a Stablecoin"
PayPal has released a statement through a spokesperson, Amanda Miller, stating that they are still exploring the possibility of a stablecoin. They will work closely with relevant regulators if they decide to move forward.
PayPal's entry into the digital asset industry started last year when they were granted a BitLicense by the Department of Financial Services, making them the first company to convert a conditional BitLicense into a full one.
Overall, PayPal's decision to pause its stablecoin project highlights the importance of regulation in the crypto industry and the need for companies to stay on top of changes in the regulatory landscape.