• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
PayPal Expands With $4 Billion Honey Acquisition
Nexo

PayPal Files Lawsuit Against CFPB Over ‘Confusing’ Digital Wallet Rules

Christine Vasileva by Christine Vasileva
2 years ago
in Bitcoin Acceptance, Companies, News, News teaser
0

PayPal, the leader in online wallet payments, has filed a suit against the US Consumer Financial Protection Bureau (CFPB) over new rules requiring overly strict and constraining reporting for its digital wallets.


Complaints of Unnecessary Reporting

The CFPB has announced a campaign to regulate so-called prepaid cards, to avoid money laundering. In the lawsuit, filed with the United States District Court for the District of Columbia, PayPal claims the rules for prepaid cards have been incorrectly applied to digital wallets, which run on an entirely different principle.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The rules for prepaid cards were updated in April 2019, and ran under the “Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E). However, PayPal claims the rules should not apply to digital wallets, which transact in an entirely different way and the regulation will lead to cumbersome reporting and unnecessary limitations for users.

The resulting regulatory regime is fundamentally ill-suited to PayPal digital wallets and is likely to mislead or confuse consumers…The rule mandates PayPal make disclosures concerning fees that PayPal does not charge and misrepresent the actual fees paid by most customers.

Digital wallets allow users to link their bank accounts and cards, and use them in a faster way in a web environment. But PayPal accounts also allow for the storing of additional funds, which, according to the CFPB, creates a case similar to prepaid cards. PayPal also complained that the reporting required by regulators was incomplete and confused users.

PayPal Stays Away from Links to Crypto Space

At this point, it is uncertain if the lawsuit would have repercussions for actual digital wallets related to crypto coins and tokens. So far, those wallets are not used in the transfer of money as classically understood. But crypto firms offering cards may also see their activities monitored more closely, or restricted.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Prepaid cards offer an opportunity to store a relatively limited amount of funds, thus potentially partially bypassing money-laundering laws. PayPal can be used in a similar way, though there are restrictive limitations for the funds sent.

As fintech expands, reporting rules are becoming more complicated, restricting the usage of funds through digital wallets. At this point, PayPal also faces competition from other payment platforms like Robinhood, as well as Abra, which combines fintech solutions with access to crypto assets.

PayPal has so far stayed away from relations to crypto assets, and has banned usage to send funds to exchanges. The payment firm also withdrew from Facebook’s Libra Association, fearing additional regulatory repercussions.

What do you think about the PayPal lawsuit for specific digital wallet reporting? Share your thoughts in the comments section below!


Images via Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christine Vasileva

Christine Vasileva

Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance.

Related Posts

Portugal

Portugal Stance On Taxes – Crypto Haven No More?

5 mins ago
US Justice

US Justice Department Executes First Criminal Crypto Charge

5 hours ago
Terra

Terra Flaw: Ethereum Creator And Binance CEO Slam Terra Via Twitter

8 hours ago
Kraken

Kraken CEO Shuts Down San Francisco Headquarters – Here’s Why

2 days ago
Twitter Shares Shed 20% As Elon Musk Says $44 Billion Takeover Deal Postponed

Twitter Shares Shed 20% As Elon Musk Says $44 Billion Takeover Deal Postponed

3 days ago
LUNA

Will Terra LUNA Go Extinct After Being Delisted By Binance, Bybit And eToro?

4 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.