Well, it's either a mini-exchange or elaborate custodial wallet with swap options. But before we get into that here are some of the conditions for this "Paypal cryptocurrency hub" idea of theirs:
It used to be so that one could only buy and sell a very select number of cryptos on Paypal, but all that's about to change as well. When this crypto hub is active one can use Paypal to buy, sell, send, receive and even exchange cryptos. Well not all cryptos, just BTC, ETH, LTC, BCH and of course their own PYUSD. There will apparently also be the option to pay for purchases you want to make with your Paypal account from your crypto hub's balance.
Alright now that the basics are out of the way, here's what this exchange/hub requires from you before you can use it:
"Before you are able to first access your Cryptocurrencies Hub, we must verify or have previously verified the required identifying information that you provide to us. The required identifying information is: name, physical address, date of birth, and taxpayer identification number. We may require additional information from you from time to time in order to verify the required identifying information, such as a copy of your government issued photo ID or evidence of your residency, like a utility bill. For some uses of your Cryptocurrencies Hub we may request that you provide a picture of your face or other biometric information for identity verification purposes."
The first two lines already require more than most centralized exchanges ask of you. And those are real exchanges mind you which actually offer a lot more than just five coins, but it's that last line which has me baffled. I've seen some exchanges do outrageous stuff like demanding you share your screen in real time and log in to the wallet you want to withdraw your crypto to, to prove it's really yours. But does Paypal know what falls under biometric? I mean, a picture with you writing down today's date is one thing, but this leaves the door open for possible ***** fingerprints, voiceprints, iris scans or whatever nonsense they might ask along the way. I honestly wouldn't put it past them and if you had your crypto on there you'd either oblige and tell yourself "oh well, they already have my ID and photo, what's one more step so I can get my money out" and just provide it, or take the L and kiss those coins goodbye.
If you think I'm overly paranoid then remember that most of these privacy violating acts are already a reality for many crypto users. This one person shared a message her exchange sent her and needed answers for before they would unlock her crypto withdrawals. Ridiculous stuff like why did you buy this crypto, what's the ultimate purpose of this purchase, did anyone help you with this purchase, why send it to this address, why did you choose Exodus as a wallet (etc).
