In its policy update of February 21, 2024, PayPal announced that it will exclude NFTs from eligibility for the buyer protection program and limit the protection of sold NFTs to ten thousand dollars at the moment of the transaction.
We are revising PayPal’s Buyer Protection Program to exclude Non-Fungible Tokens (NFTs) from eligibility [and the] Seller Protection Program to exclude from eligibility Non-Fungible Tokens (NFTs) with a transaction amount of $10,000.01 USD or above (or equivalent value in local currency as calculated at the time of the transaction); $10,000.00 USD or below (or equivalent value in local currency as calculated at the time of the transaction), unless the buyer claims it was an Unauthorised Transaction and the transaction meets all other eligibility requirements.
The crypto world seems to be the perfect place for fraudulent and counterfeit transactions, as scammers request money through digital wallets, which are often hard to trace and have no protection, instead of using traditional banks.
This policy update comes right after Cent NFT blocked NFT sales and the UK authorities seized, for the first time, three NFTs.