PayPal is updating its protection policies for NFT transactions, signaling a change in its approach to the tokens. According to the revised terms, the Seller Protection Program will no longer cover NFT transactions above $10,000 starting on May 20. This means that NFT purchases exceeding this amount will not be eligible for buyer protection, leaving sellers vulnerable to false claims, chargebacks, and scams.

This update comes after PayPal previously limited its support for NFT sellers, despite offering refunds for misrepresented items and reimbursement for sellers affected by payment disputes. While PayPal has shown increased interest in blockchain technology and digital assets, including the introduction of cryptocurrency support and a patent application for an NFT purchase and transfer system, these policy changes indicate a more cautious approach to the growing NFT market.

In a related development, PayPal revealed in November that it had received a subpoena from the U.S. SEC regarding its stablecoin, PYUSD. The subpoena, detailed in PayPal’s 10-Q report, requested the production of documents, and the company stated that it had cooperated with the SEC’s investigation.

Despite these changes, the NFT market continues to thrive, with Uniswap trading volume reaching $3 billion despite recent SEC claims. Additionally, the co-founder of NFT Price Floor predicts a resurgence of quality NFTs in the market, signaling potential opportunities for investors and collectors.

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