PayPal Has Removed NFT Transaction Protection

(CTN News) – According to PayPal’s terms and conditions, the payment giant is changing the parameters of its Seller Protection Program starting on May 20 in order to exclude Non-Fungible Tokens (NFTs) with a transaction value of $10,000 or higher from its coverage.

On March 21, PayPal published updated terms for its buyer protection policy, which reveals that NFT purchases will no longer be covered by PayPal’s buyer protection policy as of March 21.

Moreover, sellers who sell on NFT over $10,000 will not be protected from fraudulent claims, chargebacks, or other scams that could have a significant financial impact on them.

It follows an earlier limitation of support for NFT sellers, while the company was previously offering refunds for falsely advertised items, as well as reimbursements for sellers who had been impacted by payment disputes and fraudulent refund requests.

In order to strengthen its commitment to blockchain technology and digital assets, PayPal has announced that it will make cryptocurrency available on its platform in 2022, as well as a patent application for an NFT purchase and transfer system that promises user royalty payments.

However, these recent revisions to the NFT policy suggest that a cautious approach might be taken to the growing market for NFTs.

According to reports made by PayPal, in November, the company disclosed that it had been served with a subpoena by the SEC regarding the U.S. dollar-tied stablecoin, PYUSD, that it offers to its clients.

PayPal has disclosed that the SEC has issued a subpoena in connection with the SEC’s inquiry and that complied with the SEC’s request for documents as detailed in 10-Q report.

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