PayPal Freezes User's Account for Making Crypto Transactions
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Nov. 26, 2020
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Payment company PayPal has frozen the account of a user after he carried out about ten transactions with cryptos in a week.

According to the Reddit user TheCoolDoc, the system believes the account has been used for "item sales" worth $10,000, while the user claims he just "bought/sold $10,000 worth of crypto throughout the week."

As confirmation, TheCoolDoc submitted to PayPal his personal data as well as his ID and information about each transaction marked as "PayPal Crypto." However, the system has blocked the account "due to potential risks" and has frozen the remaining $462 in the account for 180 days.

Another Reddit user has also reported he is having problems with PayPal's new crypto service:

"It took them a nerve-wracking week before they finally agreed to release my funds. I'll never use PayPal again."

A user has suggested that the measures taken by PayPal could be due in part to the fact the company loses money on large user transactions. According to him, PayPal is not a crypto exchange, but a service "more like a bank account."

PayPal launched on November 12 a service for US clients that allows them to buy, store and sell Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

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