Topic: There is a code that allows PayPal to freeze your crypto assets. (Read 231 times)

so its the same with other stablecoin that have capability of blacklisting, even more not surprising because its paypal as many have said to be having bad reputation when it comes to this thing, I personally have no problem, since stablecoin isn't only what paypal released and USDT and BUSD is just far better than this one.

It is not surprising that paypal is doing this, after all they are looking after themselves and their own benefits, however what it can be difficult to understand is why people still use those services? After all it would be easy to think that anyone that is part of a market that prides itself as being home of the first decentralized currency that those people will try to not store their coins in a centralized service, as that defeats the purpose of a decentralized currency, and yet this is becoming more and more common as we speak.

This all alone is not surprising and the fact that it is not surprising is all that we need to know. I feel like we should not put our decentralized currency in a centralized place to begin with, that should be the most important thing that we need to do.

I believe that we need to reach to a point where we could end up with something that would make sense. I hope that we could make some profit from it if we are lucky and I get that it may not be all that great and easy, but we could still make it work one way or another. I understand that life is not that simple but we could still make it work one way or another. "Paypallessness" is not a thing, it would not change anything, we will make due without it as well.

Agree, Paypal is just a new company that entered the cryptocurrency market, the stablecoin market this time the only different is Paypal is a big company, and OG is in the finance market on the internet. So for me, we already experienced this in most of stablecoins, centralized problem. I also believe that they have reasons why they are doing this.

Just like any stablecoins, Paypal stablecoin can also be frozen.  This simply means that Paypal stablecoin is not different from existing stablecoin.  I just can't comprehend why companies are creating new stablecoins just to have the same features as the existing stablecoins.  This simply shows that these companies are just in for control and money. Hence, I do not find any reason why I will shift to their service when they are just offering the same deal as the others.

I wouldn't trust anything related to Paypal. It's funny how they become pro-crypto after PYUSD launched. They like to control things, but that's not really crypto. I don't trust and hold any stablecoins now but if I had to I would only choose USDC and USDT. Other than these two, I wouldn't touch any stablecoins. If I leave my money in Paypal, I run the risk of it being reset at any time. Even if we don't use Paypal, the majority of people isn't aware of potential problems.

Probably paypal already launched a crypto currency coins that's name of PUSD it’s my little remember can anything mistake but i hope can be changes paypal in crypto currency industry huge opportunity and paypal user can get more benefit from using crypto wallet it’s like one stone 2 birds like this.

USDT or USDC also have a function to freeze funds. That is, theoretically any stablecoin can be frozen on the wallet and there is nothing you can do about it. But Tether's stop-list is not big and there are really large sums in it, so I think it is better to choose time-tested stablecoins. I wouldn't trust PayPal.

Have biggest difference when saving fund in PayPal and cryptocurrency wallet, although with the same of stable coins holding in PayPal get chance account suddenly freeze depend with PayPal regulation but there are impossible get fund freeze when holding in crypto wallet. PayPal most sensitive place for saving fund, your account immediately on hold and need upload document or KYC to get access back but with crypto still have many kinds of wallet for saving fund without have to KYC.
Simple with PayPal you have make third party for controlling your fund but in crypto when saving in wallet you have own controlling what happen in the future for your crypto assets.

But, how will you use them if you don't trust them? And an exchange has different purposes or functions which can include trapping our funds for a certain period time to gain a return. Not all exchanges are centralized but there are also decentralized. However I think they still has a risk so we should be careful. Same goes to the crypto wallets. Having our own keys is not the only security that we can have but we have others too like setting up a 2FA, and so on.. We need to do them as well to have an extra layer of security.

That's indeed worse, and it's not different from scamming already. Aren't they afraid with that? If they continue like this, many people will soon not use their service anymore.

the simple way to approach this is indeed not to use their services. of course, this platform is centralised, so what can you expect with how they will do their business?
you can always opt not to use their services if you don't want to. this is not obligatory. however, some users will still use this platform for convenience purposes. but that is their choices.

What is interesting about the whole thing is that despite obtaining freedoms the likes we have not seen during the last decades thanks to bitcoin, people still want to give that freedom away willingly just to be able to use the stable coin created by PayPal, if they were going to do that then why bother investing in bitcoin and become part of this market? As it seems those people do not really understand or even care about why Satoshi created bitcoin on the first place.

OP is just whining and just confirmed what we know all along, they have been this way ever since nothing new I never trust Paypal they have had a shady business ever since and they always get away in the name of compliance, they want full control they never change and can't change their ways they have centralized ever since and even introducing their own stablecoin will not make them change their terms

Here you can see the biggest difference between centralization and decentralization. I wouldn't want such a feature to be used in a service, as instead of benefiting you, it could cause more problems. As a crypto user, it's our decision to keep our coins in our own wallet, which is a common sentiment among those who value decentralization and want to have control over their own assets.

True. I can't see any reasons to use it besides if you're not in crypto at all and have been using PayPal for years and for some reason you trust them. Anyone with a little bit of understanding of crypto just won't bother to think about using it.

Paypal is far stricter compared with tether and how can you expect if paypal will be even less strict compared with tether. Im seeing the blocking feature is a common feature that being implemented by mostly of stable token providers to minize the impact once something bad like hacked case was happening. It's all not bad. There will always be positive and negative sides. That depends on which side you take it as your consideration before using that stable token. This kind of feature is really helpful when it comes to the hacked case, like helping to freeze the money stolen by scammer or hackers.

If you were seeing it as an unacceptable thing and you shall stick to the DAI stable token. Im still trusting the centralized stable token caused by the block feature can also be considered as security from the stable token itself.
This feature is helping a lot in the various case like blocking millions till hundred millions stable token stolen by exchange site when it's hacked by hacker. I take it really positive feature even though mostly of decentralized supporters hated it.

Paypal was even more stricter when you are using their platform. 

Blocking and limiting people's account has become their everyday task.

its pretty normal considering its coming from paypal, even the other stablecoin out there also has the same features so i'm not really surprised.
considering paypal is just company seeking profit they want to comply with all regulation there is so to not getting into problems.
after all in this product they will definitely also apply the same term and conditions that they have in their platform.
and i'm also sure that there will be many people that use it because you know its paypal even though coins like USDT and many more are actually just better.

This is just the confirmation of something that anyone with some common sense would have known it was coming anyway, if people do not like the current centralized stable coins we have on the market then it was obvious that the stable coin released by PayPal was going to be worse, still does this affects me? Not really, if people want to use it and they want to give up their privacy and even their coins to PayPal then that is their choice, but I know that no matter what happens I am never going to use that coin.

What did you expect from them anyway? They are a completely centralized payment processor and aren't much different than a bank, can you expect a bank to create a cryptocurrency of its own and don't make it centralized and have no control over the funds of their users? That is not going to happen, and PayPal is no different, they can't create a cryptocurrency and let their users own it without them being able to do anything about the holdings of their users.

Those who were planning to use their cryptocurrency thinking that they would have complete privacy and safety when using it should recheck the facts and possibly change their decisions while they still can, but I believe those who use their services won't really care about this since it's nothing different than how they operate with fiat.

It's faster Satoshi Nakamoto's private keys will be hacked than PayPal will become decentralized. It is one of the most ruthless and centralized marketplaces and has long been known for its censorship of transactions. They came into cryptocurrency with their policy of centralization and custodial storage of cryptocurrencies, they don't care about cryptocurrency fundamentals and privacy. Their main task is to comply with the requirements of regulators, and the interests of customers do not really interest them.

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