Last year I did a bit of research into this topic.
From what I've seen researching most (included myself when I started looking at this) think "a PayPal account is a PayPal account. If I [in x country] can do y then you should be able too" but in reality its much far more complex.
How paypal is set up is each country or regulatory territory has its own "paypal product". As such a UK, Hungarian, Canadian, and US PayPal account (note that is countries not currency) all have their own set of features. You can not ordinarily change the designation of an account.
I believe the universal features offered on each "paypal product" is
a) the ability to hold different currencies,
b) the ability to spend PayPal balance online at the checkout, and
c) the ability to send a PayPal user an amount.
Beyond that it gets far more nuance. Some countries allow you to "Pay Out" over Visa/MasterCard (this appears as a card refund on your bank statement). I've also seen US PayPal accounts have a special process to withdraw cash over the counter at WalMart stores. The list goes on.
The situation above makes it quite hard to work out what you can and can't do. Over the years as eCommerce has matured and digital banking got more regulations. In response PayPal has significant checks and balances to ensure they don't miss-vend the wrong "paypal product" to a customer. They probably have also cleaned up many past mistakes from the early days of the internet.