A PayPal user reported that his account has been restricted due to the heavy trading of cryptocurrencies using the platform.
According to US Reddit users without TheCoolDoc, PayPal sent them a message stating that they have permanently restricted their account “due to potential risks.” The user said he made at least 10 cryptocurrencies per week, bought during the fall and sold when the price was high, and PayPal requested clarification for each transaction.
The user said, “The system flagged my account and thought I was selling $ 10,000 worth of merchandise a week, although for the past six years I hadn’t done so, I had a PayPal account.” “I sent things in for verification with my picture ID and typed ‘PayPal Crypto’ for each cryptocurrency transaction, what more can I say?”
Within a few hours, PayPal allegedly sent a message stating that the user “will not be able to continue doing business” using the platform. The user mentioned that the remaining funds – $ 462 – were deposited for 180 days, but they have used other withdrawal methods since then.
The platform imposed a limit of $ 10,000 – recently changed to $ 20,000 – for cryptocurrencies made within a week for US customers, a limit that the Reddit user denies exceeding.
U / TheCoolDoc said: “I know 100% that I have done nothing wrong and this is a misunderstanding because they think I have made more than 50 buy / sell transactions in one week when it was just crypto.”
On November 12, PayPal announced that it would begin allowing eligible users in the US to use cryptocurrencies for trade and payment. A Reddit user u / Cryptix001 has also reported issues with the platform’s handling of crypto transactions:
“I told them that I was using PayPal to transfer money from one of my online accounts to my main account (Coinbase for verification) to reduce withdrawal times. I didn’t have a problem with this until I received a large amount of money. Some bills had to be paid. It took them a nervous week before They finally agree to release my money. I will never use PayPal again. ”
The policy of the platform states that it does not require any transaction fees for users who buy or sell cryptocurrencies until 2021, and there are no fees for storing cryptocurrencies. A Reddit user suggested without losing a bit that a partial explanation for PayPal’s actions might be that he is losing money with high volume users.
A Reddit user said: “PayPal is not a cryptocurrency exchange, its service is for people who store bitcoins and then use them with merchants when this option is enabled.” “If you go and trade all the time, they will lose a lot of money covering those fees because they are not charging any fees at the moment. Their service should be more like a Bitcoin bank account and not a merchant account.”
Although the platform lifted restrictions on their accounts, TheCoolDoc stated that they would “never buy Satoshi cryptocurrencies again” from PayPal.