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So I've been asked to verify my PayPal account by betuk which is legit site but when withdrawing money it's asked me to provide letter from PayPal that has my address on it, and I've used PayPal for many years and they have never sent any letter to me. Is there something they could send so I can verify my account?
No, I'm afraid PayPal do not provide written letters with your address on them. As PayPal is a secure way to pay online, you should never provide any of your PayPal details to a merchant.
It sounds like the merchant is just trying to confirm your address. I would suggest you provide an alternative proof of address, for example a bank/card statement.
