Paypal is going to allow users to withdraw coin to other wallet

[cabron]

Global payments giant PayPal plans to let users withdraw cryptocurrency to third-party wallets, its blockchain lead said.

The term is a bit confusing, do they mean sending cryptocurrency to any wallet/address (both non-custodial or custodial wallet)? Anyway, i hope they won't they anything ridiculous such as threatening to close their account if they deem user use the coin for things they don't like (deposit to casino, withdraw to coinjoin wallet, etc.).

By third-party wallets, PayPal must be referring to wallets other than PayPal, "to the destination of their choice," as their executive, Jose Fernandez da Ponte, said.

I am also hoping that there will be no discrimination of crypto funds on the basis of where it is coming from, unless there is enough reason to flag it. Currently, my local wallet implements a policy of not allowing deposits and withdrawals involving gambling sites. It's a huge hassle for someone who gambles like me. But then, I guess it's about legal requirements as opposed to wallet preference.

Once they allow withdrawals, they won't have any control over where and which the coins will go. But like you said they may also prevent coins coming from casino since Paypal are known to have not allowed gambling funds. This is like one of the fungibility issues that should have been illuminated when it comes to cryptocurrency but the government found a way still through the bitcoin mining council.

[o_e_l_e_o]

But nothing prevent them from tracking how you spend Bitcoin, threaten to close your account or freeze your coin.

PayPal have a history of freezing accounts which were being used to buy and sell bitcoin peer to peer, and they also have a history of freezing accounts which were buying bitcoin through PayPal's own mechanisms for a variety of unknown reasons. You can do a quick search on Reddit or even PayPal's own support forums to see dozens of users complaining of having their accounts arbitrarily locked, and having both their fiat and their bitcoin funds seized and inaccessible.

Obviously all those risks still exist, but now add on the fact that PayPal will be conducting blockchain analysis to see where your coins have come from and where they are going to. Not only will they seize your bitcoin like other centralized exchanges do, but they will also seize your fiat. A lot of people use PayPal (rightly or wrongly) for daily fiat transactions, sending money to friends and family, etc. If you regularly use PayPal for these things, you should think very hard about whether you want to use them to buy bitcoin, given how "shoot first, ask questions later" their approach is to locking accounts.

[Darker45]

Global payments giant PayPal plans to let users withdraw cryptocurrency to third-party wallets, its blockchain lead said.

The term is a bit confusing, do they mean sending cryptocurrency to any wallet/address (both non-custodial or custodial wallet)? Anyway, i hope they won't they anything ridiculous such as threatening to close their account if they deem user use the coin for things they don't like (deposit to casino, withdraw to coinjoin wallet, etc.).

By third-party wallets, PayPal must be referring to wallets other than PayPal, "to the destination of their choice," as their executive, Jose Fernandez da Ponte, said.

I am also hoping that there will be no discrimination of crypto funds on the basis of where it is coming from, unless there is enough reason to flag it. Currently, my local wallet implements a policy of not allowing deposits and withdrawals involving gambling sites. It's a huge hassle for someone who gambles like me. But then, I guess it's about legal requirements as opposed to wallet preference.

Once they allow withdrawals, they won't have any control over where and which the coins will go. But like you said they may also prevent coins coming from casino since Paypal are known to have not allowed gambling funds. This is like one of the fungibility issues that should have been illuminated when it comes to cryptocurrency but the government found a way still through the bitcoin mining council.

Well, once the withdrawal is given the green light and has been confirmed, the funds is already beyond the control of PayPal. It is irreversible. However, every transaction is monitored. The moment they suspect something is against whatever rule they have, they might do something not with the withdrawn funds, which is beyond their control, but your account and the balance it has in the wallet.

Anyway, I don't think the government has something to do with the newly announced Bitcoin Mining Council.