On March 16th 2018, these phishing emails were sent to many cryptocurrency users. These emails claim that trading cryptocurrencies is prohibited under PayPal’s Acceptable Use Policy, and ask the user to stop using PayPal for cryptocurrencies.
Fortunately, these emails have been determined to be fake, although they look very realistic. PayPal is still investigating how the hacker got the emails of the PayPal users, and how they spoofed an 
But we do know these emails are fake. PayPal’s Acceptable Use Policy does not restrict the use of PayPal for cryptocurrency trading. Nowhere in the policy says cryptocurrency trading is prohibited, so we know the email was fake.
Furthermore, PayPal’s own co-founder has supported Bitcoin is the past few days, claiming it is a hedge against the whole world falling apart. It would not make sense for them to flip flop so suddenly to start banning cryptocurrencies from their platform.
Finally, there are reports coming in from people who contacted PayPal. Multiple sources have stated that they’ve called PayPal and their support line has confirmed this is a spoofing email.