PayPal blocked a member's account due to cryptocurrency trading

[tvplus006]

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?

[Furryball]

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.

[Balladtony77]

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

[Altcoinsintel]

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.

[Baofeng]

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.

[fadhilz123]

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)

[wedosgibas]

And, this reminds me of this article I read "Why you should not use Paypal for Bitcoin", 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

[disconnectme]

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

[robelneo]

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.

[Stanlo]

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

[bittick]

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.

[yurez]

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.

[hongchao123]

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

[Reatim]

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.

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.

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

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.

[Tipstar]

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.

[Helpme_please]

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)

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.

[goaldigger]

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.

[jademaxsuy]

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.

[samcrypto]

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.

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.

[coin-investor]

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?

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.