> They are not a bank, they do not abide by banking regulations.

"In 2008, PayPal Europe was granted a Luxembourg banking license, which, under European Union (EU) law, allows it to conduct banking business throughout the EU.[173] It is therefore regulated as a bank by Luxembourg's banking supervisory authority" https://en.wikipedia.org/wiki/PayPal#Regulation

You're not wrong that they don't act like an honest bank, or abides by any sort of ethics about whose money it really is that they're holding onto... but know that they are regulated in case that ever helps you!