Digital publishing site Smashwords has updated its policy, requiring certain restrictions to erotica content published on its site, because of pressure from PayPal.

Mark Coker, founder of Smashwords, explains the new terms in a letter posted on the site: “…we are modifying our Terms of Service to clarify our policies regarding erotic fiction that contains bestiality, rape and incest…PayPal is requiring Smashwords to immediately begin removing the above-mentioned categories of books.”

Coker goes on in the letter to explain that PayPal’s enforcement division contacted Smashwords on February 18th, “with an ultimatum.”  He writes: “As with the other ebook retailers affected by this enforcement, PayPal gave us only a few days to achieve compliance otherwise they threatened to deactivate our PayPal services.”

For more details on the new policy, and to read the entire letter, follow this link. (Via TechCrunch).