PayPal blocks user’s account over cryptocurrency trading

The payment company PayPal blocked one of its users after he made about ten cryptocurrency transactions in a week. The author under the pseudonym TheCoolDoc said on Reddit.

According to him, the system flagged the account as used for ‘selling things’ for a total of $10,000. The user maintains that the activity related to cryptocurrency transactions.

As proof of the deals, TheCoolDoc sent the company personal data with a photograph and information on each transaction marked ‘PayPal Crypto’. However, the system blocked the account ‘due to potential risks’ and froze the remaining $462 there for 180 days.

Another Reddit user also reported problems with the new cryptocurrency service.

“It took a nerve-wracking week before they finally agreed to unlock my funds. I will never use PayPal again,” said the author of the post.

One of the Reddit commenters suggested that the company’s actions are partly explained by its losing money on large user trades. In his words, PayPal is not a cryptocurrency exchange, but a service ‘more like a bank account’.

Earlier, the payment company launched for US customers the ability to buy, store and sell Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

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