A PayPal user recently reported that their account was restricted by the platform. The 180-day restriction occurred because of too frequent crypto activity from the user.
The user speaks on Reddit
The US-based user going by the name u/TheCoolDoc on Reddit said that the online payments giant messaged them informing of a permanent restriction. The reason behind the restriction was “potential risk.” The user suggests that they transacted in digital currencies 10 times in the preceding 7 days. The user was trading digital currencies, buying low, and selling high.
PayPal reportedly demanded an explanation for each of the transactions. The user 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?”
PayPal sends a message within a few hours, informing the user that they will not be able to conduct business further on the platform. The funds remaining in their account, $462, were put on a 180-day hold. However, the user has used other means to withdraw the funds.
The user denies going above limits
PayPal earlier had a $10,000 limit on cryptocurrency purchases within 1 week. It recently updated it to $20,000. The customer suggests that he has done nothing wrong and didn’t surpass the limits. He commented that there is a misunderstanding since they did not make more than 50 transactions in a week.
On November 12, PayPal announced that its eligible customers in the US will be able to use cryptocurrencies for trading and payments. However, it is not a lone case of issues with PayPal’s crypto policy. Another user u/Cryptix001 said that they had issues in transferring money from their Coinbase account to their main checking account.