Reddit Users Fume at Details of PayPal Crypto ‘Lockout’ Case

Source: Adobe / prima91

One Reddit user has claimed he has been “permanently banned” PayPal Platform “will be treated as” item sales “due to cryptocurrency buying / selling.”

To thread The PayPal client created by Redditor stated that they wanted others to be aware of what they termed an “ignorance misunderstanding” and that they did not cross any of PayPal’s transaction limit thresholds and instead bought and sold $ 10,000 in value have crypto during the week “at a rate of” less than $ 500 per transaction “.

Claiming that it was unable to speak to the customer service representative about the matter, the Redditor wrote:

“They really think I made so much item sales. That’s why they asked me for proof of purchase for each of those crypto transactions like I had mailed something.”

In the same thread, some users raised concerns that PayPal – which recently entered the crypto sector in the US – might be unsuitable for some crypto traders.

One commenter wrote:

“That’s why I don’t trust PayPal and its centralized design. You are already sucking Ebay Transactions: How Is Crypto Different For Them? I can already see people buying crypto and getting banned by them for really stupid shit and they kick you off and keep your crypto. “

Another suggested that PayPal’s decision to freeze accounts for 180 days if the platform determines it was unusual behavior “could be enough to prevent you from withdrawing life-changing amounts during a cop run.”

And another suggested that the rules that the financial sector has to adhere to just don’t apply to platforms like PayPal.

“People have to stop believing that they have banking-like options with PayPal, they are a private entity and they just obey their own terms.”

As reported, users own the cryptoasset they buy from PayPal but do not receive a private key. Currently, users can only hold the cryptoasset they bought from PayPal in their account. It cannot be transferred to other accounts through or outside of PayPal. In addition, crypto cannot currently be used to pay or send money through PayPal.

Cryptonews.com has contacted PayPal with a comment request and will update this article if there is a response.
___
Learn more:
PayPal CEO: Financial System Not Working, Users Are Very Eager For Crypto
PayPal, Square, Revolut, and Robinhood: A Crypto Comparison
PayPal on M&A Talks with Wrapped Bitcoin Custodian BitGo – Report

Menu