PayPal is making changes to its protection policies for Non-Fungible Token (NFT) transactions, a significant departure from its previous stance on these digital assets.
The company announced that it will be updating its Seller Protection Program to exclude NFT transactions valued at $10,000 or higher, effective May 20th. This means that PayPal will no longer offer buyer protection for NFT purchases, and transactions exceeding the $10,000 threshold will not be safeguarded against fraudulent claims, chargebacks, or other scams that could harm sellers financially.
This shift in policy comes after PayPal had already limited its support for NFT sellers, despite previously providing refunds for misrepresented items and reimbursement for sellers affected by payment disputes and fraudulent refund requests.
While PayPal has shown increased interest in blockchain technology and digital assets, as seen through its introduction of cryptocurrency support and a patent application for an NFT purchase and transfer system with user royalties, these new policy changes suggest a more cautious approach to the growing NFT market.
In a separate development, PayPal disclosed that it had been served with a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its U.S. dollar-tied stablecoin, PYUSD. The company stated that it had cooperated with the SEC’s inquiry, as detailed in its 10-Q report.
Despite these changes, the co-founder of NFT Price Floor remains optimistic about the future of quality NFTs in the market, even amidst recent fluctuations. Stay updated with the latest news by following us on Google News.