paper handcuffs

A limitation that should not be an issue. IE: you should be able to bust out of paper handcuffs but they are "technically" handcuffs. Typically a corporate rule or government restriction that is imposed seemingly to create a "maximum" or prevent overuse or abuse.

A daily withdrawal limit from your checking account is such a paper handcuff.

Only 2 per customer? What a paper handcuff!

This legislation imposes paper handcuffs on the public.