PayPal strong-arming again

Is it just me, or do PayPal's terms of use governing cryptocurrency completely defeat the purpose of using cryptocurrency comic strip the benefits of it entirely, and simply serves you add a convoluted additional means of taxing you on your own money, while providing an added inconvenience without any added benefit whatsoever?

DuckingOutstanding said:

Is it just me, or do PayPal's terms of use governing cryptocurrency completely defeat the purpose of using cryptocurrency comic strip the benefits of it entirely, and simply serves you add a convoluted additional means of taxing you on your own money, while providing an added inconvenience without any added benefit whatsoever?

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It's not just you.

I doubt if many people would fall for the 'trap' set by PayPal this time around.

It's just like Robinhood Crypto. Not your keys, not your coins.
Educate newbies to maybe make 1 or 2 transactions to get feet wet with crypto but should eventually move to non-custodial exchanges.

why is paypal such a damn monopoly its ridiculous

Tell newbies to simply install crypto wallets like Electrum (takes five minutes) and use online systems like Paxful that allow transfers or deposits via gift cards. Who needs control freak bottle necks and reversible transactions with BTC?

Basically PayPal has taken the first step and it will give them even further monopoly, if u see closely there is no other major international payments processor that is accepting crypto and it's a jumpstart. Wait and watch...

The more I think of it, the more I realize this is the way for them to circumvent the restrictions recently placed on them in the US that prevented them from being able to allow customers to deposit a balance in their PayPal account.

If I'm not mistaken, there was recent legislation which essentially determined that PayPal could not act like a bank and enforce Bank level requirements on their customers without any of the accountability to the bank would be required to live up to and then on the flip side, arbitrarily withhold for longer than a bank would be allowed to or even in some cases completely confiscate account balances without reasonable explanation while then leaning on the loophole that they are not a bank ( a lot to follow I'm sure, but PayPal is a convoluted monster) in this sounds like just another version have exactly what they were doing with PayPal cash balances, and basically skating Buy on a technicality like they always do that it is cryptocurrency which is not regulated federally yet and therefore they would be able to continue their practices.

TL;DR u.s. government determined that PayPal , not being a bank, did not behave responsibly with consumers funds and that since they are not a banking institution or willing to be held to that level of accountability they can no longer have cash balances for us customers, and this is a loophole, considering the recency of these events it just looks like a quick way to continue bad business practices without being held accountable

TL;DR

DuckingOutstanding said:

TL;DR u.s. government determined that PayPal , not being a bank, did not behave responsibly with consumers funds and that since they are not a banking institution

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Yes, this was implemented in India in 2012. Now they can't keep any fund balance of customers from India. Funds get automatically withdrawn everyday to a designated bank account and all expenses has to be done through an added CC or debit card. It's a seamless process and reduces a lot of headache. Now the best they can do with a customer here is to just limit the account and cannot hold any funds. They also have been brought under banking ombudsman like any other payment processor and customers can complaint to the ombudsman and they are supposed to give response within a designated number of days.

RayChand said:

Yes, this was implemented in India in 2012. Now they can't keep any fund balance of customers from India. Funds get automatically withdrawn everyday to a designated bank account and all expenses has to be done through an added CC or debit card. It's a seamless process and reduces a lot of headache. Now the best they can do with a customer here is to just limit the account and cannot hold any funds. They also have been brought under banking ombudsman like any other payment processor and customers can complaint to the ombudsman and they are supposed to give response within a designated number of days.

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At least some countries are holding them accountable - they STILL aren't bound to the banking and financial requuirements of FDIC members in the USA, and it was only within the last six months ot a year (possibly less0 that the ability to hold a balance in your paypal account (as opposed to having it automatically withdrawn) and the ability to transfer money from your bank to be stored in your paypal account was effectively taken away from them... Now this crypto policy effectively gives that ability right back to them in the form of a giant unregulated loophole.