Business
PayPal restricts a user from trading cryptocurrencies
Popular online payments giant, PayPal, has reportedly banned an account for frequently trading cryptocurrencies and imposed a 6-month hold on its funds. The platform restricted the user, stating the potential risks associated with crypto day trading.
According to the user’s post on Reddit, PayPal permanently banned his account after the system termed his frequent crypto trading as “item SALES.” He also mentioned that it is possible that the staff was unaware of the company’s crypto services, hence the reason his account was closed. The user added that he submitted a photo ID with the inscription – ‘PayPal Crypto’ for each transaction and called on the company for a proper explanation.
The Reddit post explains further:
“The system flagged my account, thinking I was selling items worth $10,000 in one week when I had not done so in the last six years I have held a PayPal account (US account). So, I knew the developers did not account for this when they released PayPal Crypto. Hence, I submitted the stuff for further review with my photo ID and wrote: “PayPal Crypto” for each crypto transaction. I called their customer service, and the respondent assured me that they had accelerated the progress of the review. I went to sleep, only to wake up to discover my account has been permanently limited.”
No explanation from PayPal
The user, who is known as TheCoolDoc on Reddit, reinstated that PayPal didn’t give any explanation but went ahead to ban the account, highlighting potential risks linked to cryptocurrency trading. He also confirmed that he had $462, and the company restricted withdrawals from the account for six months.
The user here added:
“No appeals. No explanations. No consideration that their reviewer may be a naive 50-year-old with little or no knowledge of PayPal’s crypto services. Whenever I contacted their support center about PayPal Crypto, they had no idea of what I was talking about even after weeks of allowing cryptocurrency trading in the platform.”
Although PayPal now allows users to trade cryptocurrencies (following its announcement earlier this month), the recent post suggests that there are still issues the company needs to address before things get out of place.
