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PayPal and other payment processors to be investigated by FED

By Owen Weldon     Jun 4, 2013 in World
The U.S. Federal Reserve is investigating possible risks in online payment processors such as PayPal Inc. as well as Bitcoin, the virtual currency.
According to IBITimes, the announcement was made at a conference on Monday, just as bankers are worried that new online players could end up disrupting the financial system.
According to Wall Street Journal, in a response to a question about regulatory scrutiny over payment processors, the FED Vice Chairwoman, Janet Yellen, said that they have been talking with banking organizations and they are trying to understand what some of the concerns are with these types of payment mechanisms.
According to PHYS, Yellen went onto say that there are already regulations that do apply to PayPal, as well as other payment providers, but they are still trying to figure out where the risks are.
It was just last month that authorities in the US seized Mutum Sigillum LCC, which was one of Bitcoin's digital currency exchange, because they were accused of functioning as an unlicensed money service business.
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