Users of PayPal will now need to be more cautious while going with day trading of cryptocurrencies on its platform as the online payment giant has permanently blocked the account of a user. Reportedly, his account was banned over his too frequent use of the platform.
Account was banned because of potential risks linked with crypto day trading
The Reddit user named u/TheCoolDoc posted on the United States-based social media platform Reddit saying that the online payment firm PayPal has permanently banned his account. He said that he came to know about the ban on his account through a message that was sent by PayPal to him. As per the Reddit user’s post, the account of the user was banned over some potential risks linked with the day trading of cryptocurrencies.
He said that the technical system of PayPal treated buying and selling of cryptocurrencies as “item SALES”. As per the user’s post, PayPal said in the message written to the user:
“After a review, we’ve decided to permanently limit your account due to potential risk. You’ll not be able to conduct any further business using PayPal.”
The user went on to say and stated:
“The system flagged my account thinking I was selling items worth $10000 in one week when I hadn’t done so in the last 6 years I’ve held a PayPal account. So I submitted the stuff for review with my photo ID and wrote “PayPal Crypto” for each crypto transaction BECAUSE WHAT ELSE could I say?”
While explaining the incident further, the Reddit user said that the firm did not provide any kind of explanation or appeal. And a direct ban on his account was imposed by the payment giant.
User’s balance has been placed on a six-month hold
The balance available in the account of the user has been placed on hold for the next sixth months by the firm. User claimed that he had a balance of $462 in his account.
PayPal has placed a temporary hold on his balance but his account has been banned permanently. And he now would not be able to operate this account again despite his claim that he did not do anything wrong and that it is a misunderstanding.