As far as I know PayPal is really random when it comes to locking people's accounts and blocking transactions. Internet is full of curses and rages about PayPal for their groundless actions against legitimate users, so I can't exclude the possibility of this happening to me.
As for now, I haven't had any issues with selling digital goods and my services using various PayPal services including Buy Now buttons and Express Checkout for years and I've never asked my customers for their physical addresses. They have addresses in their PayPal accounts anyway.
And I hope it stays that way.
