PayPal removes NFT transaction protections

by

PayPal is planning to change its security procedures for buying and selling Non-Fungible Tokens (NFTs), signifying a significant departure from its earlier stance of facilitating such transactions.

Starting May 20, the payment company’s Seller Protection Program terms will no longer cover Non-Fungible Token (NFT) sales worth $10,000 or more, as stated in their conditions page.

On March 21st, it was announced that PayPal’s updated policy no longer includes NFT purchases under its buyer protection. Furthermore, sellers will not be shielded from potential financial losses due to false claims, chargebacks, or scams in NFT sales exceeding $10,000.

PayPal’s new development comes after their previous restriction on supporting NFT (Non-Fungible Token) sales. Previously, they had provided refunds for misrepresented items and compensation for sellers dealing with payment disputes and fraudulent refund demands.

PayPal has shown increasing involvement with blockchain technology and digital assets, most notably through the introduction of cryptocurrency transactions on their platform in 2022 and a patent application for an NFT purchasing and transfer system that offers user royalties. However, these developments indicate a cautious stance towards the rapidly expanding NFT market.

In November, PayPal revealed that they had been served a subpoena from the U.S. Securities and Exchange Commission (SEC) about their US dollar-linked stablecoin, PYUSD. According to their 10-Q report, the SEC requested documents from PayPal, and PayPal indicated they had already complied with the SEC’s investigation.

Read More

2024-04-16 20:30