It's frowned upon here although it's probably allowed... It's like Paypal exchanges here, it's not disallowed, but it's frowned upon on.
There's nothing illegal, disapproved or disallowed about Paypal exchanges at all. They're just commonly acknowledged to be a genuinely appalling idea.
Actually it's a widely known FACT Paypal forbids any crypto digital currency activity.
And they will seize your account and take your money.
They emailed me their TOS when i violated it way back.
Same email a guy got here posted in 2012 before me i found using Goggle.