FailPal has never worked with digital currencies which is why nobody in their right mind accepts it for webmoney/liberty reserve even in closed trading networks. As soon as you mention you are currency trading with paypal you violate TOS and they can seize all funds
Your account will eventually be limited, or a nigerian will phish an account from a senior but clueless trader and scam you all while logged into their account like they do to countless powersellers on ebay every day. You can reverse transactions up to 180days later i wouldn't trust paypal if i was selling $5 CDs.
Never understood why bitcoin users use paypal when the entire e-currency world of Pecunix/LR/Webmoney/HDmoney/GDP/Cgold/EGold hasn't touched Paypal for trading since the 1990s heyday of scamming.
Where is that in their TOS? It may exist, but I've never seen it. Have a link handy?
A closed network is much easier to manage. I can eventually root out the scammers or whoever is inviting them. Otherwise they just keep making new accounts.
When it's all said and done I may re-list it, but I will rewrite the email contracts and make it VERY clear about the risk involved AND that BCM can not be liable for any loss.