Rumors: payment systems block cryptocurrency-related financial operations

As some Redditors (the users of the popular Reddit social network) tell, the financial transactions connected with the Kraken digital exchange are being blocked by Western Union. It supposedly violates the internal rules of the company.

Other sources tell that the very popular PayPal payment system is suspicious towards cryptocurrencies and freezes assets of those accounts which were connected with the cryptocurrency activities, the freeze period being 180 days. And while in the situation with Western Union we only have words of the forum user as proof, and he cites the message he could have forged himself, in the case with PayPal, the reports come from the much more reliable source — The Merkle.

An obvious advice in this situation for any cryptocurrency trader will be to maximize vigilance and do not conduct trades using these companies’ services.

While there is still no confirmation from both Western Union and PayPal, the terms of service of the latter tell that the company can close any account any time they deem necessary. Another possible explanation is that the cryptocurrency sellers are viewed as unlicensed currency dealers. Such dealers must get a necessary licence, which most traders have not done. This means that a cryptocurrency trader who wants to safely operate in PayPal, can get familiarized with the hard licensing procedure, get the license and get back to trading.