PayPal blocked a member's account due to cryptocurrency trading

[ene1980]

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":

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.
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.

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[Kvalentine]

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.

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

[Kvalentine]

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":

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.
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.

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?

[Greatchu]

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

[kodtycoon]

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.

[Tessnik]

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.

[chip1994]

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.

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.

[mikelpol]

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.

[FanEagle]

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.

[leea-1334]

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).

[cryptomaniac_xxx]

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.

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.

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).

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.

[1l1l11ll1l]

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.

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

[thesmallgod]

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.

[bakasabo]

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.

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.

[Kupid002]

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.

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.

[asus09]

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.

[montaga]

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

[wxxyrqa]

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.

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.

[Yatsan]

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.

[orengitu]

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.