Personally I have no problem with PayPal's rule. It is their service after all. My only grip is the question on how are they going to enforce the violations. Are they going to siff through every piece of my transactions and reading through what I have bought from eBay and the likes? Privacy could be an issue here.

I do hope PayPal can find a balance way of detecting illegal transactions as well as respecting user's right.
Source: CNet
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