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PayPal Takes Firm Action Against User For Crypto Trading

PayPal, the American company operating a worldwide online payments system that supports money transfer, sent out a strong message by banning one of its user.

The American giants banned one of the users for six months after he was caught taking advantage of the firm’s zero crypto fees to day trade over $10,000. After being nabbed for the deed, the account of the user was banned for six months. This means that the account of user has been put on a six-month hold.

A Reddit user under the moniker “TheCoolDoc” notified about the happening as his account was banned from crypto trading during the day time. According to the user, PayPal’s system flagged his frequent cryptocurrency buying and selling as “item sales.”

Earlier, speculations were rife of PayPal entering the crypto market. The expectation was finally met when the American giants entered the space in October. Since then, its massive bitcoin (BTC) buying activity appears to be contributing to the current scarce BTC narrative.

PayPal’s ultimate Bitcoin adoption endgame is for its users to utilize crypto as a funding source for online purchases across the platform’s 28 million merchants. Thus, its cryptocurrency adventure makes the service more like a virtual currency purse than an actual exchange.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.