PayPal suspends user for trading crypto in its crypto trading platform
By Bob Garcia
A PayPal user calls out the payments platform for suspending him for activity the platform allows
A PayPal user was surprised recently when he suddenly found out that his account with the payment processing firm had been suspended. He was apparently taking advantage of PayPal’s entry into cryptocurrency trading and had conducted several transactions, but found his account “limited” due to “potential risk.” Shortly after, his account was suspended temporarily, with PayPal apparently unhappy with his crypto trading on its crypto-trading platform.
“TheCoolDoc,” posting on Reddit, explained, “The system flagged my account thinking I was selling items worth $10,000 in one week when I hadn’t done so in the last 6 years I’ve held a PayPal account. I submitted the stuff for review with my photo ID and wrote ‘PayPal Crypto’ for each crypto transaction because what else could I say?”
He reportedly completed ten crypto transactions in just a week and, even though he showed PayPal the proof, he subsequently received communication from the company that it had suspended his account. Apparently, the company wants to give people the ability to buy and sell digital currencies, as long as they don’t do it too often.
One reply to TheCoolDoc’s post seemed to support that theory. “Bittabet” asserted that the company loses money on high-volume trades, even if it doesn’t explicitly prevent them, and adds, “PayPal isn’t a crypto exchange, their service is meant for people to hold Bitcoin with and then spend it at their merchants when they turn on that ability. If you go and trade constantly they lose a ton of money covering those fees since they’re not charging any fees right now. Their service is supposed to be more like a Bitcoin bank account, not a trading account.”