Topic: There is a code that allows PayPal to freeze your crypto assets. - page 2. (Read 245 times)

There's no surprise I guess! Paypal is a legal entity running their operations from multiple countries. So they are bound to adhere to the local and international laws. As a centralized entity they need control over their own token. They would like to freeze the asset of their user if used for anything illegal. It's simple!

They cannot operate like an open cryptocurrency like Bitcoin. I am sure whoever will use paypal's crypto service, they are aware of such rules.

Why would anyone have presumed that it's not centralized? I don't get it. Most likely that's mostly because it's easier legally for them instead of other cryptos, and they probably save mountains of money in just transaction fees compared to banks. This is a good thing but this was never going to be a fully permissionless token, otherwise they could have just used other crypto assets.

Any time you leave your assets in the control of a third party you have a risk of getting funds confiscated or rugged. Self custody is so important, you should be the only person with access to your money (maybe a spouse or descendant also). Crypto history is littered with exchange fraud, hacks, forced KYC etc. Take the risk away & hold your own keys.

What you said in your last sentence is the correct way to do it. Don't trust any exchange. Use them for that purpose only. An "exchange".
Remember "Not your keys, not your coins." Let's not forget that, please.
Whatever coins we hold, let's look for a wallet that supports it first because that's the only security we can have from all these scams that are happening left and right. Without that, we are prone to anything. The worst case scenario that I am imagining is your asset suddenly gone in Paypal or any exchange and they can still prove that you don't really have anything in their wallet. That will be fucked up because we cannot fight a battle against big companies like that.

It seems centralized crypto exchanges, and you know paypal is centralized platform, here your assets can be frozen at any time. I used PayPal for the several times but now dealing with big amount of money. They’re are very strict with their terms & conditions. So i will never hold big amount at least in the PayPal.

Actually, all of them aren't decentralized as long as it's being owned by an entity or there's a central authority that has made by it. So if this stable coin of Paypal is made, you don't expect it to be decentralized. In the past, Tether could even freeze your funds if you've done something wrong and it's reported to them, that your USDTs are likely to be frozen by them.
(https://cointelegraph.com/news/circle-tether-freezes-over-65m-in-assets-transferred-from-multichain)
Your account alone there also can be subjected to freezing if they find you did something wrong too.

Even without USD/Crypto.

Paypal can freeze your asset, If you broke their term & conditions. Why really suprise for these one, USDT is also still can lock your asset that's why need to think smart for what you are gonna to do.
- Service
- Basic knowledge

Well! this is not really a surprise since you are likely to read those rules and regulations before fully signing up on their platform. In fact, they are not the only ones that are doing this, I believe most centralized exchanges can actually do this and not only they can freeze your account but the entire accounts of the users currently at the exchanges and they are powerless to even withdraw their cryptocurrencies if ever that's gonna happen. I experienced this kind of freeze back when Okex had some problems regarding some small things that caused their entire exchange to be unable to withdraw.

Exactly, it's almost like keeping your crypto on exchange. You don't do that if you understand crypto at least a little bit.

Majority probably anticipated this despite not having the technical knowledge to review the smart contract. I mean people can just look at the company behind it and conclude that PYUSD will be regulated at some level. It's the same with USDT which came way before Paypal's version.

Well Paypal is a centralized platform. Having crypto in it means you dont hold your coins within your wallet still they can always move or freeze it. For sure anyone who uses it are aware of that and KYC is just a plain ticket to monitor you and the funds movement on each users.

Good thing I dont use Paypal that much for big funds. Maybe for some quick cash payment but will not used it for crypto purposes.

I don't know why is anyone surprised. I thought that it would work like that since it was announced. Never had plans to use it anyway.

Despite being enforced on the Ethereum blockchain, Paypal's new USD stablecoin isn't decentralized. numerous internet druggies have examined the coin's smart contract law and discovered some concerning details, similar as PayPal's power to cancel deals, the capability to indurate stoner means, and the capability for the admin( i.e., PayPal themselves) to freely issue and burn coins. With two deals( first" snap," also" wipeFrozenAddress"), the new PayPal USD stablecoin's" assetprotection" part can fully wipe your balance. This is appertained to as a" centralization attack vector" in smart contract security. In agreement with the PayPal USD terms of service, you must use your PayPal account to pierce the stablecoin, which means complete Know Your client( KYC) procedures apply and your held commemoratives are UNDER PayPal's control. Yes it means they enjoy your coins. Other stablecoins, similar USDC and USDT, are well known to have similar mechanics, but we all know how PayPal can be. They have a history of expropriating millions of bones
 in stoner means by indurating them, for which they have been sued in class conduct. Paypal's stablecoin shouldn't be taken seriously in the defi community. It can not indeed be used to offer liquidity or as a trading brace.
I'll better save my coin in my own wallet fuck all this shit