But aren't chargebacks a risk with every reversible payment method out there? KYC should help businesses protect themselves against these things (to a degree). Shouldn't it?
I think that PayPal is maybe too "customer oriented" and allows chargebacks much easier than banks, for example.
Exchanges seem to prefer old school bank transfer. The few that allow Credit cards (another chargeback champion) ask for quite a premium there afaik.
As for them not wanting other services to compete with them, then I will have to disagree there. There were no exchanges that supported PayPal except for Virwox, for as long as I can remember and PayPal only started to offer crypto recently.
Well, if I'd be PayPal and I sell Bitcoin (or, even more, IOUs) at 21 000$, why would I agree to make business with Binance that sells Bitcoin at 19 500$? To allow the users get bitcoin cheaper and I'll have less profit?
And indeed, PayPal is new in this, but before that PayPal was prohibiting Bitcoin related transactions and there was also the aversion of every honest bitcoiner against PayPal for being scammer's heaven and allowing chargeback for everything related to bitcoin. So before it was even worse/riskier. Or am I missing/confusing anything?