File Hosting Service Refuses Spying for PayPal, Picks Bitcoin


File Hosting Service Refuses Spying for PayPal, Picks Bitcoin

The alternative open source file hosting software system Seafile just announced it’s accepting Bitcoin due to a “misunderstanding” with PayPal. The popular platform is similar to the functionality of Google Drive or Dropbox offering both community file hosting and its professional services.

Also read: OneCoin Claims Are ‘False and Misleading,’ Warns Belgium

Seafile Picks Bitcoin, Drops PayPal

Seafile just announced that customers can now purchase cloud accounts and licenses using the cryptocurrency Bitcoin at the company’s web shops. By partnering up with BitPay, the business can now accept the digital currency for its file hosting services. Seafile says it’s been asked many times in the past to accept the cryptocurrency.

But despite having issues with PayPal calling their services “high risk,” the company initially didn’t think Bitcoin was the right move. But discussions with BitPay made them change their minds, and the company believes “Seafile and Bitcoin are a natural fit.” Bitcoin allows their customers an alternative way to pay while simultaneously protecting user privacy. Seafile:

At first, we were a bit skeptical if we can and should work with a US based payment service provider. As a German company, we are not allowed to transfer users’ personal data outside the EU. But with bitcoin payments, this is not an issue. We can set up the payment process so that no user data is transferred to BitPay. (We use the WooCommerce BitPay plugin. Customers can pay BitPay invoices from any bitcoin wallet.

PayPal has been known to censor businesses with their own discretion time and time again. In fact, it actually has a history when it comes to censorship towards companies not aligned with certain beliefs among other reasons. With Seafile’s case not only was the company profiled as risky, but they were asked to monitor data traffic for customers sharing illegal content.

Seafile announced on June 19 on  that they ceased services with PayPal, explaining:

PayPal has demanded that we monitor data traffic as well as all our customers’ files for illegal content. They have also asked us to provide them with detailed statistics about the files types of our customers sync and share on

More File Hosting Services Will Turn to Bitcoin

Bitcoin is again showing its great potential as a censorship resistant medium of exchange. The cryptocurrency holds to no borders, nation states, corporations, or chooses what kind of beliefs are moral.

One famous file hosting service that was shut down by government intervention for piracy was Megaupload. Just recently, the creator of Megaupload Kim Dotcom told fans via Twitter that his new service Mega 2.0 will involve Bitcoin coming next year. As more businesses turn to Bitcoin for help, more people are finding out how beneficial the cryptocurrency can be.

What do you think about Bitcoin’s censorship resistance? Do you think more businesses will find this attribute useful? Let us know in the comments below.

Tags in this story
BitPay, Kim Dotcom, MegaUpload, Paypal, Seafile, Wikileaks

Images via Twitter, Pixabay,

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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