There is no other way for the cryptocurrency industry to thrive without working paw in hand with regulators, PayPal CEO Dan Schulman believes.

On Wednesday, Schulman joined the Web Height online conference to talk over the cashless era of the global financial industry with Squawk Box host Andrew Ross Sorkin.

As function of the discussion, Schulman addressed issues related to cryptocurrency regulation, calling on the industry to closely collaborate with fiscal authorities to bring more utility to crypto. "There is only one fashion to arroyo this, and that is working paw in hand with regulators," he argued.

Schulman went on to say that regulatory compliance is foundational for providing services in the crypto industry:

"Part of that foundational capabilities are regulatory compliance, full understanding of security, run a risk management, all of the financial controls, FinCEN controls, AML controls. Without that, yous really accept no manner that you should be in this arena. [...] Yous must have those."

Schulman said that the company invested a "tremendous amount" in regulatory compliance, noting that PayPal became the get-go firm to get a conditional BitLicense from regulators in New York. "Nosotros're doing this hand in hand with regulators, and it's the but way to go about doing this," Schulman argued.

"Strong regulatory oversight is extraordinarily important, and I've got zero upshot with that," the executive said. Schulman stated that PayPal has strong relationships with regulators because it aims to prevent illicit practices like money laundering while providing some degree of financial health.

In October, PayPal officially broke the news on the company'southward plans to innovate the ability to buy, hold and sell a number of cryptos including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) directly with the PayPal digital wallet. PayPal afterwards rolled out its crypto service in the The states, assuasive clients to trade up to $20,000 per calendar week.

Schulman has previously claimed that PayPal's crypto services will eventually increase the utility of cryptocurrencies.