i think it is another way for the government to moniter how much income you make from other sources.i know awhile back i heard from a gent at a toy show say that he prefers to sell his stuff at toy shows rather than e-bay because the government realized that some individuals were making tons of unclaimed income from selling on ebay and not declaring that income on their annual tax returns.this same gent told me e-bay was a side thing for him and his wife and they make $40,000 + every year on e-bay alone.they both have regular jobs too and they don't declare the income from e-bay .then e-bay started making people register with them and now i heard that the gov. moniters the action on e-bay and if you make over a certain amount per month the gov will send out a letter to those people asking about their incomes.they already know about it they just want to see who declares it and find the tax cheats.that is probably the same thing they are doing with paypal because so many people use it now.thats my opinion but that sounds logical to me considering they want all of your personal info especially your social insurance tax number and date of birth
