Earlier this month, global payments giant PayPal introduced the cryptocurrency to its millions of user base. Although the service was initially only available to 10% of US-based PayPal users, the news was followed by a Bitcoin rally that pushed the token price above $13,000. Now, reports are emerging that PayPal restricts user accounts too often from buying cryptocurrencies.
According to Reddit user TheCoolDoc, PayPal has sent messages to users stating that their accounts have been permanently restricted “due to potential risks.” The user then explained that they had made more than 10 crypto transactions in one week, where they bought when it was down and sold the crypto when the price was high. PayPal has asked users to describe each transaction.
“The system flagged my account thinking I was selling $10,000 worth of goods in one week when I haven’t done so in the last 6 years I’ve held a PayPal account. I submit items for review with my photo ID and write ‘PayPal Crypto’ for every crypto transaction because what more can I say? said the user.
Following this, PayPal responded within hours and noted that users “will not be able to carry on further business” using PayPal. The user continued that the remaining funds in his account ($462) were held for 180 days. However, users have used other means to withdraw funds.