Paypal isn't even considered a bank in any of the countries it operates in (except Luxembourg, where they serve all of the EU). This means they're not subject to any of the regulations that are attempts to keep banks honest.

Keeping your money in PayPal is a massive risk. As a customer, you have no protection, no deposit insurance (covered by your Federal government in Canada and USA), and basically when things go wrong, you are stuck with sending emails and legal action.

What a massive scam. Spread the word: avoid PayPal.