Fintech giant PayPal is leaning on Paxos to handle its crypto services, Mastercard is expanding its crypto program and a prominent Canadian crypto platform has been accused of wash trading as much of 90% of its volumes.
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PayPal Picks Paxos
PayPal, the fintech giant planning to bring crypto trading to its massive user base, has chosen Paxos to handle the new service’s supply of digital assets, according to two people familiar with the matter. Paxos launched a brokerage service last week, which provides an API solution to allow businesses to begin offering crypto buying, selling, holding and sending capabilities – while handling all regulatory compliance aspects. It’s unknown what cryptocurrencies PayPal intends to offer, though its entry into the space makes it one of the most mainstream companies to do so.
Canada-based crypto trading platform Coinsquare has been accused by the Ontario Securities Commission (OSC) of inflating its trading volumes in an illegal practice called wash trading. In a Statement of Allegations from the OSC, filed last Thursday, the regulator alleges Coinsquare’s executives directed staff to wash trade as much as 90% of the platform’s reported volume between July 2018 and December 2019. The alleged misconduct occurred while Coinsquare was applying to the OSC to register a subsidiary, Coinsquare Capital Markets.
Mastercard is expanding its cryptocurrency program by granting Wirex, a crypto payment business, principal membership status. This status makes Wirex the first native crypto company to be able to directly issue payment cards to its customers. The Financial Conduct Authority (FCA) regulated-Wirex offers a payment facility that automatically exchanges crypto into fiat currencies.