This is bad news - Paypal is an incredibly shady business and I dislike them intensely. They have all the power of a bank, but none of the accountability. They can freeze your assets and if you want to complain dial 1-800-talk2robot, like pissing in the wind. I'm sure you've all read the horror stories about Paypal. There certainly isn't a shortage of em.
They're actually a bank in Europe.