A PayPal user reports their account has been restricted afterward they traded crypto too oft using the platform.

According to U.Southward.-based Reddit user u/TheCoolDoc, PayPal sent them a message stating information technology had permanently limited their account "due to potential chance." The user said they had made at least ten crypto transactions within a week, purchasing during dips and selling when the toll was high, and PayPal had asked for an caption for each transaction.

"The system flagged my business relationship thinking I was selling items worth $10,000 in one week when I hadn't done and then in the last 6 years I've held a PayPal account," the user said. "I submitted the stuff for review with my photo ID and wrote 'PayPal Crypto' for each crypto transaction because what else could I say?"

In a matter of hours, PayPal reportedly sent a message stating that the user would "not be able to conduct any further business concern" using the platform. The user stated that the remaining funds in the business relationship — $462 — were placed on a 180-day hold, but they have since used other means to withdraw them.

The platform imposed a $x,000 limit — recently changed to $xx,000 — for crypto purchases made inside a week for U.S. customers, a limit the Reddit user denies exceeding.

"I genuinely 100% know I did nada wrong and information technology's a misunderstanding considering they call back I made fifty+ purchase/sell transactions in a span of one week of items, when it's simply crypto," said u/TheCoolDoc.

PayPal appear on Nov. 12 that information technology would brainstorm allowing eligible users in the United States to use cryptocurrencies for trading and payments. Reddit user u/Cryptix001 also reported bug with the platform'southward handling of crypto transactions:

"I told them I was using PayPal to transfer money from 1 of my online accounts to my main checking account (Coinbase to checking) to bypass the longer withdrawal fourth dimension. I had never had an issue doing this until information technology was a larger sum of money that I needed to pay some bills. It took them a nerve-wracking week before they finally agreed to release my funds. I'll never use PayPal again."

The platform'due south policy states that it charges no transaction fees for users buying or selling crypto until 2021, and there are no fees for holding crypto. Reddit user u/bittabet suggested that a partial explanation for PayPal'south actions could exist that it loses money with users conducting high-book trades.

"PayPal isn't a crypto exchange, their service is meant for people to hold Bitcoin with so spend it at their merchants when they turn on that ability," the Reddit user stated. "If you go and trade constantly they lose a ton of money roofing those fees since they're not charging whatsoever fees right now. Their service is supposed to be more like a Bitcoin bank account, not a trading account."

Even if the platform removed the restrictions from their account, TheCoolDoc said they would "never purchase a Satoshi of crypto" from PayPal again.

Cointelegraph reached out to PayPal for comment, only had not received a response at the fourth dimension of publication.