Coinbase Having Problems With PayPal – Technical Glitch or PayPal Policy?
Yesterday I tried to move some funds from Coinbase to PayPal when I discovered Coinbase having problems with PayPal. I had made a Coinbase transfer to PayPal just a few days earlier which is what surprised me. I tried it 2-3 times and no go.
That ended up being a good thing as the price of Bitcoin continues to plunge. So Coinbase having problems with PayPal ended up being a good thing in the short term. Remembering reading somewhere that PayPal was cracking down on not only cryptocoin transactions but also crowdfunding transaction I decided to dig deeper. And guest what I found?
“You may not use the PayPal service for activities that involve currency exchanges or check cashing businesses”. I suspect this is why Coinbase having problems with PayPal has become a thing. A full tread of the Coinbase PayPal thing is here. I’ve been using PayPal for quite a while now to quickly transfer funds of out of Coinbase to my bank account via PayPal. With PayPal’s new 30 minutes-or-less transfer of funds to your bank account via a debit card for just 25 cents, I was using it all the time.
Now with Coinbase having problems with PayPal (official acknowledgement below) coupled with the discovery of PayPal’s own policy it seems possible that direct access between PayPal and cryptocoin exchanges is coming to an end. On the other hand, Coinbase has had problems with PayPal before which ended up being resolved as discussed on Reddit.
In light of recent push back from banks towards their customers in handling cryptocoin transactions my sense of suspicion surrounding Coinbase having problems with PayPal is understandable. I certainly hope this problem is technical in nature and not a sudden policy enforcement issue with PayPal.