Paypal forbids the transference of cryptocurrencies between users and payments for services with them. PayPal reserves the right to take action it deems appropriate in the event of a fork.
PayPal joins the companies that facilitate exposure to the price of Bitcoin and other cryptocurrencies on their platforms, but it does not allow its users to send, receive, or pay for goods and services with them.
Now, all PayPal users residing in the United States can buy and sell Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), the company reported a few hours ago. The payment company also intends to extend its cryptocurrency service internationally through Venmo, the operator of a mobile application for payments.
“We are pleased to announce that all US resident users can buy, save and sell cryptocurrencies directly with PayPal,” they stated.
PayPal posted on its Twitter account that the weekly limit for the purchase of cryptocurrencies went from $ 10,000 to $ 20,000 from now on.
PayPal limits functions and could block user funds
Under PayPal’s terms and conditions, you cannot send cryptocurrencies between people or deposit funds directly into the application, as you could do with a conventional cryptocurrency wallet. The purchase of goods or products and payments for services are also forbidden.
Likewise, there would be no control over the private keys of the wallet, so there is also the risk that the funds will be blocked if the terms and conditions of use are violated. This has raised concerns given the rigor of the company in this regard.
In this line of measures that the company could take depending on the case, it establishes that if there is a negative balance in national currencies, but the client has cryptocurrencies, it allows PayPal to debit the owed balance on the cryptocurrencies.
Likewise, PayPal ignores any event such as a bifurcation or error in the cryptocurrency networks that operate, as well as the volatility of their prices.
The custody of cryptocurrencies is the responsibility of Paxos, PayPal’s commercial partner. Paxos, registered in New York, operates under the BitLicense of this state, implying that they must have an endorsement of sufficient value to protect their clients. However, No specification mentions what mechanisms PayPal and Paxos have to provide liquidity and security to this new market.
The information comes at a time of widespread enthusiasm when Bitcoin remains on the rise to reach $ 16,000, a price that appeared again since January 2018. This new information possibly adheres to the optimistic sentiment about the price of Bitcoin, as it did late last month after the first PayPal announcement.
By: Jenson Nuñez.