Most of the paypal horror stories always relate to paypal users not providing or not willing to provide valid information to identify their accounts. In Luxemb

Most of the paypal horror stories always relate to paypal users not providing or not willing to provide valid information to identify their accounts. In Luxembourg (and paypal is a registred and regulated bank in Luxembourg), the government requires the bank to know it's customers identities, otherwise the bank is not allowed to do business with their customers. And an email will not be enough. You have to provide passports/identity cards. And I guess that's what happens here. After a certain transaction amount, paypal requires more information than just an email address.