May 22, 2024
PayPal Ends Protection for High-Value NFT Transactions
NFT

PayPal Ends Protection for High-Value NFT Transactions

PayPal, a leading payment giant, has announced changes to its Seller Protection Program that will exclude Non-Fungible Tokens (NFTs) transactions amounting to $10,000 or more starting May 20.

This move signifies PayPal’s cautious approach to the NFT market as the company continues to navigate its involvement in blockchain technology and digital assets.

Policy Updates

On March 21, PayPal updated its terms and conditions to reveal that NFT purchases will no longer be covered under its buyer protection policy.

Furthermore, NFT sales exceeding $10,000 will not be protected against false claims, chargebacks, or scams that could harm sellers financially.

These updates mark a departure from PayPal’s previous support for NFT sellers. The company had offered refunds for falsely advertised items and reimbursement for sellers affected by payment disputes and fraudulent refund requests.

Cautious Approach

Despite its growing engagement with blockchain and digital assets—evident in the rollout of cryptocurrency support on its platform in 2022 and a patent application for an NFT purchase and transfer system promising user royalties—PayPal’s recent policy revisions suggest a careful stance towards the rapidly expanding NFT market.

SEC Inquiry

In November, PayPal disclosed it had received a subpoena from the U.S. Securities and Exchange Commission (SEC) concerning its U.S. dollar-tied stablecoin, PYUSD.

PayPal’s 10-Q report stated that the SEC subpoena requested document production, and the company confirmed its cooperation with the inquiry.

This development highlights PayPal’s ongoing regulatory scrutiny as it continues to explore the cryptocurrency and NFT spaces.

Image: Wallpapers.com

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