There are plenty of reasons as to why using traditional financial systems are not working properly in this day and age. One of the reasons is how these centralized authorities can take action affecting various users, without asking for their consent. PayPal is one of those authorities, as they started banning SmartDNS and VPN services, locking customers out of their accounts. In Paypal’s defense, such tools are against the company’s terms of service.
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PayPal Doesn’t Like VPN Or SmartDNS
One of the main reasons why people use services such as a VPN or SmartDNS is because they want to bypass certain geological restrictions. In most cases, this is done simply to access a particular website or video that is only available to a particular country or region. But when it comes to financial matters, things are quite different.
By using SmartDNS or VPN services, users can access PayPal services even if they are not available in their own country. This is against the company’s terms of service and allows PayPal to ban users from doing so. No drastic measures had been taken up until this point, but it looks like the company’s stance has shifted.
While it is not the first time PayPal has shown a rather aggressive stance towards service providers that can be connected to illegal activities, this decision comes as a surprise to many people. Earlier this week, PayPal stopped accepting payments for a company providing SmartDNS and VPN services, on the base, this business model could facilitate copyright infringement in the long run.
At the same time, this creates an awkward predicament. PayPal has so much power over people’s funds they can just decide on a whim to stop processing payments to certain companies or individuals, even if their services are completely legit. This can lead to a lot of frustration for business owners and consumers alike.
All of the businesses affected by this decision will have their PayPal account limited instantly, making it impossible to move funds out of their account. Furthermore, this decision cannot be appealed by anyone affected by this move by PayPal, and there is no way to remove the limitation by any means. The only option left for the service provider sis to resort to alternative payment options.
Bitcoin Is A More Than Viable Alternative
It goes without saying that, when it comes to accepting payments from international customers, Bitcoin is the obvious answer. What makes this modern digital currency so unique, is how Bitcoin cannot be controlled by a central authority. There is no company to limit Bitcoin payments moving to and from an individual company by any means.
Furthermore, Bitcoin is the only global payment method in existence today. Unlike solutions such as PayPal, users will need access to existing financial services. Bitcoin creates a different economic infrastructure that is open to everyone in the world. VPN and SmartDNS providers should take the time to look into accepting Bitcoin payments, as companies such as PayPal exert far too much control over other people’s money.
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