PayPal Bans User for Trading Cryptocurrencies

Online Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term giant, PayPal has reportedly restricted an account for cryptocurrency trading and placed the balance on hold for six months. The company banned the user citing potential risks associated with crypto day trading.

According to a user post on US-based social news aggregation platform, Reddit, the payments company permanently banned his account after PayPal’s technical system termed his frequent crypto trading as “item SALES”.

The post mentioned that PayPal asked for multiple explanations for buying and selling of cryptocurrencies and the staff did not even know about the crypto services of the company. The user added that he submitted a photo ID and wrote ‘PayPal Crypto’ in the description for each transaction and called multiple times for an explanation.

“The system flagged my account thinking I was selling items worth $10,000 in one week when I hadn't done so in the last 6 years I've held a PayPal account. (US account btw). So I knew the developers didn't account for this when they released PayPal Crypto so I submitted the stuff for review with my photo ID and wrote 'PayPal Crypto' for each crypto transaction, I called their phone and he said he's expedited the review. I went to sleep, the next day (today) my account is permanently limited,” the Reddit post states.

No Explanation

The user with Reddit handle TheCoolDoc, added that PayPal did not give any explanation and imposed a permanent ban citing potential risks associated with cryptocurrency trading. According to the user, he had $462 in the account and the company restricted withdrawals from the account for at least 180 days. “No appeals. No explanation. No consideration that their reviewer may be an ignorant 60-year-old with no knowledge of PayPal's own crypto service. Whenever I've called their support about PayPal Crypto in the past they had no idea what I was talking about even after weeks after release,” the user added.

Paypal announced earlier this month that it has enabled users to trade Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, but the recent post suggests that there are still issues the company needs to address.