Bitcoin Forum

A trader with the nickname Thecooldoc reported on Reddit that his account in the PayPal account was permanently blocked. "PayPal permanently banned my account due to CryptoCurrency buy/sells being treated as "item SALES": https://www.reddit.com/r/CryptoCurrency/comments/k0rmtw/paypal_permanently_banned_my_account_due_to/
Can the Reddit community help the trader?

https://i.ibb.co/B3tCwRP/photo-1527264935190-1401c51b5bbc.jpg (https://ibb.co/KhXrmHG)

Unfortunately this will give bad reputations to PayPal and they will end up losing good customers who plan to use PayPal for it's crypto currency part, the only way this guy can get help is if many decide to raise voice for him, through social media channels where it can easily reach PayPal team.

Honestly I don't know what to trust anymore in crypto space, DEX are going off-road with hacks happening here and there and Centralized platforms are using unnecessary power over users fund, i don't know where else to run to with everything that's happening right now, PayPal should knew better that implementing crypto projects on their platform can't drag down their credibility if things aren't handled very well

Get out of paypal and don't use them again.

Imagine someone that knows your passion for Bitcoin finds Bitcoin in paypal, buys it and then what would he understand about it.
That he can buy and sell and use to pay they paypal connected shops. Just great and completely useless to even care about it.

This is not Bitcoin it is Paypal Bitcoin.

Thanks for the news, it seems that the issue of this trader was solved but it is another example why we shouldn't even consider using Paypal.

Paypal is centralised so what do you expect, if they see that you are taking advantage of their shortcomings and loopholes then definitely they will come after you and block your account. Sad thing is that what if you still have some cash because you exploit their system with crypto trading? Yes, you can't withdraw it and this is close to scamming someone.

When many people interesting because PayPal joins in the crypto world, at that moment I'm not interested at all, because I know PayPal is a centralized company and I don't like it. So everything news about it, I just skip it. And now they do it. The centralized company can do anything with your account, I hope with this case people will save their funds into safe storage(wallet with private key)

And, this reminds me of this article I read "Why you should not use Paypal for Bitcoin (https://blog.trezor.io/why-you-should-not-use-paypal-for-bitcoin-f6e2d436ca96)", and I agree and worry about several things in that article. Let's see this is just the beginning, whether Crypto X Paypal will run as we expected since its announcement or more and more problems

I do not know why anyone would expect anything different from Paypal, they have history of blocking transactions and their users, finding you guilty you just need to proof to them that you are innocent. If you have bought Crypto with their platform withdraw to your wallet it is safer there, also try as much as possible to use a P2P exchange for your Crypto transactions you need to protect yourself

There goes one, many issues like this will come out and this will harm the Cryptocurrency community, thinking that this is the way things work. PayPal is on a bad start with this issue, they have total control of everything the fact that you are not allow to deposit and withdraw Cryptocurrency why hold they limit people without specifically telling how their Cryptocurrency platform works.
I don't have it yet in my dashboard but I will not even think of using it, when there are better option than PayPal and there is no risk of getting your account limited.

I'm not siding with PayPal but why is this the only person facing problem with crypto on PayPal? Maybe there is more that meet the eye? I've been using PayPal for like 5 years now and I've never get into any type of account troubles, maybe the guy broke some rules or illegal funds is at play here? Who knows? PayPal knew what crypto could get them to in the next few years so I'm not sure they will want to mess things up

Seriously, lately I've been hearing about paypal adopting crypto and now this thing comes up. Is there any underlying reason that causes this though? or maybe paypal forbid any crypto transaction outside their platform and only limit crypto transaction within their platform using their service?
This is honestly confusing and paypal really need to solve this problem.

PayPal payment system is a bad place to store cryptocurrency, and even more so you don't need to use PayPal for day trading.  There are large crypto-exchanges or DEXs for trading, as well as many ways to safely store cryptocurrencies in a cold wallet.

Paypal is one of the worst place to store your crypto. I will avoid it

Don't react as if PayPal is automatically the Bad guy here because we only hear the Users side but not the Paypal administration in which there is a Good explanation about why a account was permanently banned.
Paypal has Been in the Business for Long time and they will not just act Against Crypto using but how this being use and there might be a breaking of rules though Maybe The user has no idea of that rules.
Why is that?what is on Paypal that must be avoided mate?let us be transparent in every thing we are throwing against company .

But yeah this might bring a Bad reputation specially for us Cryptonians.

Maybe it was an algo of Paypal that banned the user. He wasn't making any transactions for years and suddenly went on making 10k+ transactions on daily basis which might have triggered many flags. On the reddit, he has updated that his account and funds were restored with some limited functionality. Seems like Paypal was still not ready for crypto.

we didnt need paypall at all but actually they need us to growth their business by using cryptocurrency name. if more traders or investors in crypto market use their services they get more money , meanwhile their services didnt support us  and even banning account arbitrarily.

This is not good and very risky to those who are planning to use Paypal as their place of exchange. Though this is just a small amount of money, the problem is still here and what more if the victim deposit a huge amount of money. This is why centralized market is too risky, they have the power to freeze your account without having a fair investigation, this will result to a negative impact to Paypal.

Is there any way that this could be avoided? Paypal should issue warning before any implementing any sanctions to their users. If this is been included in terms and condition then it should be always good to give warnings before proceeding to any transactions. This what other platfroms are doing and yes it is good because it can avoid any possible problem like this. Hopefully, paypal will going to review theur suspended accounts and refund btc if there are any gets involve.

We have great exchange out in the market so I don’t know why but I can’t see any special offer coming from Paypal aside from their popularity and of course aside from being a large company, nothing more.

If this case didn’t resolve then I suggest its better not to use Paypal for your crypto transactions if you don’t want to feel the same stress like this. Always have your hardwallet where you have control, I wish to see more update regarding this one and hope that there’s still a chance to resolve if the account is not guilty for any anomaly.

This is what I'm worrying so even if they implemented it in other countries I will not use that feature, my account has been limited twice for transacting with an unverified account, it's a light offense but enough to limit my account and hostage my Paypal funds, this is not a remote possibility for everyone, we are bound by a lot of terms of services on PayPal and they are very good on picking account to restrict so beware.

I wonder what is the real purpose of paypal to allow their users to trade bitcoin and then ban users because they are trading with them. If they can introduce new investors it is well and good but if they are dealing with the investors like this, then there is no point in trading with them.

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I think the reason for banning the account should be the source of the amount and we will only know about the broader picture when we hear from both teams.

What special offer are you talking about? So because PayPal implement crypto payment you expect them to start giving up some crypto discount? I'm happy that PayPal implement crypto because it's one of few reasons why crypto market is better today, PayPal implementing crypto will brings nothing but more exposure to crypto

How many users have PayPal banned because this is the only one I heard about so far, I'm guessing the guy did something wrong, maybe try to cheat the system one way or the other? I still find it to believe that PayPal have zero reason for banning the trader, think about it, what good will banning accounts bring to PayPal company?

I feel like there is more to this story than what we are getting right now, PayPal team knows what will happen if shits like this happen on their platform, crypto lovers will surely stop using the platform If all they are getting is account bans, I'm guessing that the victim isn't telling us what really happened, that's just my own point if view

This news maybe have come out and spread to other social, it leave a bad impression for paypal itself. it was there no warning beforehand or was there a warning but it was not noticed? it will be a hot conversation until problem is resolved.

Paypal has been in the news in recent Time for it anti crypto activities, this is one out of many accounts that have been suspended due to crypto transactions.

These are also limitations to using centralized platforms. They have the power to close our account and give ridiculous reasons. Of course we can't sue them because we don't have access to their headquarters, just like Coinbase did with users in Asia.
So please consider carefully when using these centralized platforms. If you do use it, you should just leave a little money there and should access it every day to update your account status.

This news definitely influenced bitcoin, because of which it fell to $ 16,500, but this is just unverified information. And even if this is true, then this was an isolated case, if many users start trading bitcoin on PayPal, they will not be blocked.

PayPal are just literally thieves, they will sell crypto to you and then ban you from making use of your account for no good reason and take your money. This is not the first complaint I am seeing about this PayPal crypto thing, they have blocked so many accounts that belonged to users that were buying crypto with their platform.

Right from time I have always known that’s what PayPal will be like, they place too much restrictions on their platforms, and it wouldn’t be good for trading crypto because you would need to be trading all the time when you’re a day trader. PayPal is just for Hodl and it doesn’t even make any sense because it doesn’t work like regular wallets.

I really do not get why anyone would use PayPal first of all to buy Bitcoin (but I get it if they have no other option and they can actually access Paypal) to trade.

Even if you cannot legally use exchanges for real crypto, there are still plenty of derivatives trading (trading Bitcoin futures or options or XBT shares that are based on BTC).

It's because that's what they are really to bring into the market, you can used your Paypal to buy bitcoin and trade, but it is not what we understand, so we are clear by now. We can't used Paypal to make trades.

Again, we already knew this option, and perhaps the this user of Paypal wanted to try it and see how it goes and obviously, it backfired on him. But thanks to him anyway, we are now clear as to what Paypal wanted us to do with our bitcoin through their platform.

Paypal will always be the biggest beneficiary, they made a crazy announcement about crypto a few weeks ago and now the excessive restrictions still haunt crypto users. yes it is quite strange considering there are other options besides paypal, but I think Paypal is too much for a centralized system

Even before paypal announce that they will be accepting payment in crypto, we both know during the years that the payment giant is one of the strict payment platforms. Thousands of users accounts are being suspended and their money lost https://www.trustpilot.com/review/www.paypal.com. They hardly accept any dispute. Their customer support would have been the first approach to understand the reason why the account was blocked. Probably one of their term and condition of used has been violated. In such case, hardly will you get your account back together. In case the reason was probably due to receiving fund from account that has been flag as scam, it is very impossible to get your account back. Meaning all the money in it is gone and it gonna belong to paypal international. sorry for your loss.

I've heard that people got some problems related Bitcoin and PayPal, but most of them appear because people were lazy to read FAQ.
I think this user god banned due to unusual activity in his account. This was just a security triggered action. The guy did not tell a lot about his account. It is knows that his account is 6 years old. Maybe it had no trade history at all, but then he made a deposit and as he said, he made 50+ buy/sell deal during 1 week. Perhaps security bot found this suspicions and banned him.

He said that support refused to unblock him, but I guess this was due to they were answering default phrases and did not go deep into his story. Hope he gets his account unbanned soon.

There is no way the balance will be gone this is only on the administration hand ,and they can not just block if it does not really have irregularities made with their platform. they can ask for other documents to claim the balance but stealing  it from them in away of blocking  them in using their platform is very wrong.

I get confirmation with PayPal take big fund above 2% if you wanna purchase bitcoin or altcoin with PayPal account, I think is not ideas if you wanna buy bitcoin with PayPal, during many break rule from PayPal after blocked member account have purchase bitcoin. This the first time I never agree if PayPal available to buy bitcoin, just make transaction with friend sending payment to other PayPal account will get problem by PayPal how come if you use PayPal to buy or sell bitcoin, you will get trouble when PayPal blocked your account permanently you need waiting more than 180 days to get back your funds.

The sooner that junk is gone the better, can be traded also https://tdxp.app/market/Paypal

I believe that the PayPal administration understands that such actions of the company will have a negative impact on their credibility and on the popularity of PayPal among users. In addition, I do not exclude that there is a real reason for the blockages, and most likely this reason is in the requirements of the government of certain countries.

Such existent issue will surely have a bad impression to arise towards PayPal for that thing to happen of banning an account due to crypto trading knowing that they have announced that they are open for crypto adaptation which makes it look ironic in the first place. PayPal administration may have something to do with this or else other crypto users and other users as well will pull out their funds from PayPal because of such actions like this. May they have some clear explanation regarding that matter so the user can duly understand what really have happened to end up banning his account. It must be some violations on the part of the user or the case is really up to PayPal itself that must be clarified for many people might be in fear of doing crypto transactions with them because of that issue.

The reason why some people in crypto trading using PayPal is because PayPal Join crypto. I always tell people to be patience and do a thorough research before you take any kind of risk, because in this crypto business nothing is certain. I'm very sure that this act that was taken by PayPal will have a future implication because people will find it difficult to trust them.

I heard lately that PayPal intends supporting cryptocurrency, this news has been making rounds lately and it's surprising to hear that accounts of a user was blocked due to cryptocurrency. I'm personally of the opinion that there must be some other reasons which may have necessitated the account suspension.

Well in my opinion we cannot blame Paypal or the trader, I think they are a misunderstanding between both of them Or the member had done suspicious like big amount of money going to his/her accounts recently or break any terms of agreements, Or Paypal is playing the bad guy because of them seeing how good crypto currency has become.

does the user did something wrong on PayPal terms and conditions, or maybe did something against the rules?
if that's the case, I think a new company that is trying to implement something that we are doing before, will scare other people to use these platforms,
I think we should just step away from this company and use the platforms that we are not stressed or we can use freely, there is a lot to use, thanks for the information, I was thinking if I'm gonna try PayPal maybe I'll be thinking about it first.

Centralization always create problem to us. Even though PayPal accepts bitcoin, i do not like an idea using bitcoin in this platform. There are tons of terms and policies as well as restictions and they can even ban your account with a ridiculous reason.

I remain use exchange as a place to buy and sell my cryptocurrency because they are more trust than paypal. Problems can be resolved in a few days without having much troubles

I think if PayPal keeps blocking like this it will only make the platform damaged and can't be trusted anymore because most cryptocurrency people use PayPal.

PayPal has increased the opportunities for traders by adopting cryptocurrency but if paypal blocks a member's account because of the cryptocurrency business there will be a reason behind it. Maybe they broke the rules of account usage and had the opportunity to scam which is why paypal has taken such action if you close the account without any reason the demand for paypal will gradually decrease users will use other sites when using crypto. Paypal will suffer a lot therefore you need to review and use the sites well.

I thought, just a moment ago they accepted cryptocurrency? well, so much news that after receiving crypto, paypal again banned crypto after receiving it. Well, I think the principles are fluctuating. Personally, I don't use paypal for crypto business because of things like this.

I think the reason this ban happening because if it continues paypal don't get commision like a service that they intend to open.
The reason paypal announcing to integrate crypto into their service maybe to earn some commision for every transaction meanwhile if people just making transaction or making a deal with other people outside the platform and then uses the platform for payment method they got nothing. But its definitely bad practice from paypal.

It never says the reasons why the account has been blocked anyway into Paypal.  However, if it is that Paypal made the wrong things here, surely, the platform of Paypal will be damage and this is not good actually to all Paypal users. And for the crypto fanatic better to stay away for this one(PAYPAL) so that no one next become a victim by this issues.

Paypal lost a lot of its userbase to stripe the moment they decided to keep peoples money without giving them any option. If you put yourself as a payment processor and not as a bank, you have zero right to keep people's money from them, you can't do it and you should not be even allowed to do it, it should be illegal.

If you gave me an item to give to some customer, and I gave it to customer and took the money to bring to you, but decided to keep the money for 180 days, I would be a thief, but paypal looks to be just a company. Right now there are hundreds of other smaller places that does paypals job better, and stripe is a huge competition that is just few lines of code and never bothers you this way. Hopefully stripe will go into crypto one day, would make things easier.

Who will help him? Whining on social media? If large companies block even the President of the United States. And then some kind of trader. It will not be possible if you have no friends in PaYPal.

It is not safe to use Paypal not only for cryptocurrency, but for regular transactions either. I've seen many times people complaining about weak support from Paypal. Now I have faced it by myself. I have received fiat transaction and the funds are currently "on hold". It was said that they will be transferred to my account after 7 days. 10 days has already passed and the support is silent for 4 hours already.

Centralized companies can easily do something like this anytime, they don't think about the future impact. they just follow their own egos. it is true that you must store assets in a safe place and do not connect with a centralized company such as paypal. I agree with your statement

What a pity, if it was ture and the reason just cryptocurrency trading, looks like PayPal is probably going to lose a lot of users.

That's why I don't feel satisfied using bitcoin though Paypal.although i think this matter is deeper than the news.i assume that user broke rules, that's why Paypal ban his account.but its true that cecentralize platform bitcoin gives us freedom of its useage where centralize company like paypsl prevent us from those freedom like don't give us key, can't transfer it to another even can't withdraw bitcoin from their platform.hope those issues will be solved or people will leave paypal permanently

After the recognized of btc, still have a lots of thing that helps crypto industry to grow more though with paypal platform.but such type of incident could really damage paypal's reputation. but the question is paypal accepted crypto, for buy sell and trading on there platform.so its doubtful that paypal banned his account permanently without any reason? I think first of all, we should know the truth before manking reaction aganist paypal. if he found not guilty, then expected that his account will be fully recovered.otherwise paypal will lost its consumers

I said this a couple of times after I saw alot of posts here talking about how good it was for PayPal to adopt crypto on their platform, things like this is the main reason why I keep away from PayPal, because it already has a bad reputation for blocking its users, I have seen alot people on Twitter saying the exact same thing, they all said PayPal blocked them from accessing their account and they weren't able to retrieve the funds either, my advice is keep away and don't make use of PayPal for crypto transactions.

I used to think, paypal will be the another vital platform for crypto Usage but this news may cause the end of cryptocurrency future on paypal platform.it is never excepted from such reputational platform like Paypal.as an effect on their consumers, paypal is going to lost huge number of crypto lover who was there to use crypto.so after all it is proved that, exchanges are the best choice instead of Paypal