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PayPal, the financial services giant, has changed its policies on user protection by excluding NFTs from its Purchase Protection as well as Seller Protection programs. This revision was announced in the policy update of the company. pageThe new law takes effect May 20, 2024.
These programs previously offered protection against fraudulent NFT transactions as well as chargebacks on a wide range of PayPal purchases. NFTs, however, will not be covered by any of the programs.
It means that buyers are not protected if the NFT they purchased is counterfeited or misrepresented, and sellers will be completely exposed if their NFT sale exceeds $10,000. For lower-valued transactions, there is limited protection. However, this only applies to purchases that are clearly unauthorised.
This decision’s rationale isn’t entirely clear. NFT markets are known to be volatile and have frauds. PayPal is hesitant to handle disputes. proof Ownership within the market. NFTs operate on the blockchains instead of traditional transaction systems, and this decentralized network can be difficult to verify legitimacy or identify fraudulent activities.
The move is surprising, given PayPal’s efforts in recent months to embrace Web3 technology. In September 2023 the company filed an patent application The plan is to simplify NFT trading through fractional ownership, and by integrating third-party services providers.
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Source: blog.cryptoflies.com
