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PayPal accounts are country specific, so yes, if the system cannot identify you and you can't provide info to show you are who you say you are. If you wanted to use US PayPal account, you needed to maintain current US account based info (Photo ID, bank/cc statement, billing address). And/or, open a PayPal Philippines account for use in PH since you're based there now. You could have linked a US bank account to a PayPal PH account, a privilege for US citizens abroad.
Since you're banned, I do not know if you can open a PH PayPal account either.