PayPal suspends an account used for… trading in cryptomoney

Dezember 2020 Nadine 0 Comments

PayPal users who use the service for daily trading of cryptomoney will have to change their strategy. An American user’s account was closed after he made numerous transactions, taking advantage of the absence of fees.

PayPal sanctions trading in cryptoskills

Is PayPal’s service for buying and selling cryptomoney already showing its limits? On Reddit, the user „TheCoolDoc“ who has made many transactions on the platform with his cryptomonnages claims to have lost access to his account.

According to his post, PayPal’s system reported his frequent purchases and sales of encryptions as „item sales“.

According to his testimony, PayPal’s security systems would have spotted his account because of the amounts transferred, in the order of $10,000 in one week. However, the user claims that these transactions were carried out in the context of traditional trading, buying during lows and selling when the price was high.

PayPal then allegedly asked him for an explanation for each transaction. To which the user adds :

„I submitted the material for review with my photo ID and wrote ‚PayPal Crypto‘ for each encryption transaction, what else could I say? »

Without being able to prove anything, PayPal simply closed the user’s account:

„After review, we decided to permanently limit your account due to a potential risk. You will no longer be able to trade with PayPal. »

A simple mistake by PayPal?

This decision on the part of PayPal is astonishing. Although its cryptomoney buying and selling service is quite young, it is highly likely that it had been in preparation for a long time and therefore ready to handle this kind of situation as it should be.

Initially set at $10,000 per week, the limit for buying cryptomoney on PayPal was raised to $20,000, following a massive influx of users. However, „TheCoolDoc“ denies that it has exceeded this limit, with all of its transactions representing a volume of approximately $10,000.

The user adds that the remaining $462 in his account has been put on hold for 180 days and is completely locked out.

„I’m 100% convinced that I didn’t do anything wrong and that it’s a misunderstanding, because they think I’ve made more than 50 buy/sell transactions in one week, when it’s all about cryptography,“ said TheCoolDoc.

This testimonial – if true – proves how poorly PayPal’s service is working. Would the platform have rushed it to take advantage of Bitcoin’s bull-run?

It is particularly astonishing that the system itself is not able to differentiate between transactions linked to encryption and the sale of items, given that the transactions take place within the platform’s own ecosystem.

The user concerned by this sad case adds that his interlocutor at the PayPal help centre did not know that the platform provided such services. This is further proof that the introduction of cryptomoney within the payment giant is still far from being completed.

Moral of this story, not your keys, not your corners.