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Breaking: PayPal Insures Crypto Investors From FTX-Like Crisis

PayPal provides voluntary insurance-type protection to protect crypto customers from unforeseen events such as FTX crisis.
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Breaking: PayPal Insures Crypto Investors From FTX-Like Crisis

Financial services giant PayPal provides protection of up to $50,000 for every crypto consumer. PayPal will protect customers from all unauthorized crypto transfers from their accounts.

It will help PayPal increase in user base as well as protect its customers from events such as FTX and hacks. However, voluntary protection will only apply in case of unauthorized crypto transactions and errors.

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PayPal Protects Crypto Investors

PayPal Senior Vice President Jose Fernandez da Ponte recently announced crypto transfer feature on Venmo or PayPal. Customers could also transfer crypto to external wallets and crypto exchanges. Jose Fernandez da Ponte said they will also protect customers from unauthorized transactions.

As per updated terms and conditions, PayPal will protect customers from unauthorized activity involving the purchase or sale of crypto assets from their accounts.

“PayPal will cover you for the full amount of unauthorized purchase or sale activity, as long as you cooperate with us, and follow the procedures described below.”

Also ReadLitecoin Creator Predicts Massive Post-Halving LTC Price Rally

In case of unauthorized crypto transfers, customers will be reimbursed with up to a max amount of $50,000 over the life of the account holder. PayPal is the first company to promise to compensate users for any losses incurred by unauthorized cryptocurrency transfers.

Unauthorized transactions including password hacked used to send cryptocurrencies from a PayPal account or if crypto assets are sold from the account.

“Any reimbursement you receive from PayPal represents a warranty of our own services. PayPal does not provide insurance and does not insure you against loss of your crypto assets.”

The insurance PayPal provides is voluntary for electronic funds transfers to protect its users. The U.S. Consumer Financial Protection Bureau (CFPB) is yet to enforce Reg E for crypto payments. However, voluntary protection by PayPal is a crucial development in the regulatory framework for protecting cryptocurrency customers.

Also Read: Bitcoin Price Breaks Key Level, Risks Falling To $26K Ahead US Fed Rate Hike?

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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