Nfts
PayPal Removes Protections from NFT Transactions
PayPal is set to change its NFT transaction protection policies, marking a dramatic shift from its previous support for the tokens.
According to its terms and conditions page, the payments giant is changing the parameters of its Seller Protection Program to exclude non-fungible tokens (NFTs) with a transaction amount of $10,000 or more starting May 20.
THE updated conditions News surfaced on March 21, revealing that PayPal will no longer cover NFT purchases under its Buyer Protection Policy. Additionally, NFT sales over $10,000 will not be protected from misrepresentation, chargebacks, or other scams that could financially harm sellers.
The development follows an earlier limitation of support for NFT sellers by Pay Paldespite previous offers of refunds for falsely advertised items and refunds for sellers affected by payment disputes and fraudulent refund requests.
PayPal’s growing commitment to blockchain technology and digital assets is evident, especially with the rollout of cryptocurrency support on its platform in 2022 and a patent application for an NFT purchase and transfer system that promises royalties to users. Still, these policy revisions suggest a cautious approach to the burgeoning NFT market.
In November, PayPal disclosed that it had received a assignment The US SEC has issued a subpoena regarding its US dollar-pegged stablecoin, PYUSD. Detailed in PayPal’s 10-Q filing, the subpoena sought the production of documents, and PayPal said it has cooperated with the SEC’s investigation.