This post is to share info, possibly to help people before they end up in the same situation.
I have been selling Bitcoin for about 5 months with PayPal as the payment processor. I've been self-employed during this 5 months and have become reliant on Bitcoin-related income. I've actually been involved with Bitcoin for over 3 years and have saved up quite a few Bitcoin, which I decided to sell when I was laid off.
Over the 5 months, I've had several disputes which I lost because Bitcoin is not a "tangible item" and not covered under Seller Protection. I've lost over $2000, which essentially means I had over $2000 stolen from me via fraudulent PayPal charges. These buyers knew what they were doing and knew they could get away with it.
On May 10, 2017, I received an email from PayPal stating that the selling of Bitcoin means I was operating as a currency exchange (which includes electronic media/money/currency), which is against the Acceptable Use Policy. Quote "Per our current Acceptable Use Policy for Money Service Businesses, PayPal may not be used to operate a currency exchange, bureau de change or check cashing business including the sale of bitcoin."
Now I am required to sign an affidavit stating I understand and will comply. Then they later say they look forward to hearing from me and thanks for choosing PayPal as my business partner. Well, I just lost my business.
Hope this helps others before they get in too deep.
