Yes, you can look up countless stories of small sellers online that have had their payment processing stopped by Stripe or Paypal. In some cases, these are decade old accounts and they keep their funds for weeks after the user is banned. I've even had a friend get banned from Paypal when logged in from another country they didn't operate in. I'm not talking about sending funds, just checking his account. When he asked why, they said their system alerted something and their decision is final.
The government truly made them judge, jury, and executioner. They can stop you from collecting payments at any time, hold your funds, and don't have to provide reasons. Forget appealing their decision since it's final most times.
In the end, the government let this industry "self-regulate" itself and crypto gives users a different option.