On: Bitcoin exchange account of Coinpal shut down by P...

[patio11]

Paypal is both a credit card processor and an online wallet (stored value, digital cash, etc), both aspects of which complicated their anti-fraud and regulatory efforts.

There exists money in my Paypal account which can be spent or transferred at my direction and which does not exist elsewhere at an account under my control.

[count → patio11]

But the money in your paypal account is denominated in US Dollars (or Yen, or whatever real world currency), isn't it? Paypal's 'online wallet' is just another way of saying 'checking account'. I have a checking account which has a stored value that I access via debit card or paper check, and can transfer or spend the money at my direction. The money in that checking account does not exist elsewhere at an account under my control.

I don't see the difference here?

[lutorm → count]

I thought Paypal had argued strenuously that it is not a bank, so it's, according to them, not just another way of saying checking account.

[jarin → patio11]

At least there seem to be some good alternatives coming out (like Dwolla).