Here in the UK it's "Paypal (Europe) Ltd" which handles our accounts, and they come onder the same system if financial services regulation as the banks. Which means that they'd be on very dodgy ground if they stopped somebody getting at their own money. Expect arguments about what "in dispute" means if they freeze somebody's account over issues such as selling alleged adult content. They're able to say they don't want somebody's business, but they're not as free to mess with the customer's money as they're reported to be in the USA.