A PayPal spokesperson later clarified that the Acceptable Use Policy went out in error — and "this language was never intended to be inserted."
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PayPal has backtracked after an update to its policies declared that users could be fined $2,500 for "misinformation."
In an update to its Acceptable Use Policy, the payments giant had said it would reserve the right to withdraw funds from incriminating accounts directly. The clause in question read:
"You may not use the PayPal service for activities that … involve the sending, posting, or publication of any messages, content, or materials that, in PayPal's sole discretion … promote misinformation."
This spread like wildfire online — and prompted crypto advocates to argue that PayPal was preparing to engage in censorship.
David Marcus — who formerly led PayPal and ran Facebook's doomed digital payments service — had also voiced his condemnation of the policy, writing:
"It's hard for me to openly criticize a company I used to love and gave so much to. But PayPal's new AUP goes against everything I believe in. A private company now gets to decide to take your money if you say something they disagree with. Insanity."
A PayPal spokesperson later clarified that the Acceptable Use Policy went out in error — and "this language was never intended to be inserted."
But some critics have claimed that the company only performed a U-turn because it got caught.
Some customers have declared that they are now closing down their PayPal accounts as a matter of principle — with Bitcoiners highlighting the incident as a powerful reminder of why this cryptocurrency exists.
PayPal has delved into the world of cryptocurrencies over recent years — allowing users to buy, sell and hold four cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash.
