BitMit.net shutting down. Why?

[Geremia]

Does anyone know why the "eBay of BTC," BitMit.net, is shutting down in a few weeks?

[JoelKatz]

Apparently, their jurisdiction has new regulations that apply to companies that hold customer funds, which they do because they provide escrow.

[infamousdutch]

it's a shame,  hopefully this is just a setback until they get their AML paperwork straighten out.

[CryptoNames]

it's a shame,  hopefully this is just a setback until they get their AML paperwork straighten out.

+1 gotta love this message on their site though...

"With your help Bitcoin will be able to defend itself in the fight against all financial systems that are based on debt." 

[Duetschpire]

Check cryptothrift.com for a great alternative with Bitcoin and Litecoin support

[Xendrios]

Apparently, their jurisdiction has new regulations that apply to companies that hold customer funds, which they do because they provide escrow.

What jurisdiction are they in?

[Duetschpire]

I contacted them and asked why they were shutting down. No response. They seem to be based in Hong Kong.

I also withdrew my money 2 days ago and still didn't receive it.

And I noticed they changed their shutdown date from 4 weeks to 2 weeks and removed all listed items.

Perhaps they were forced to do this due to pressure from the DOJ?  Perhaps people were selling contraband inside those DVD cases they were selling at ridiculous prices.  All it takes is for the seller to refer you there and say 'buy this DVD, it's got what you want! '

But this happens everywhere, it's impossible to stop something like that. Not even ebay would've be able to check what's in the DVD case from the photo LOL

My suggestion is to have a service for transiting goods 

[Geremia]

Perhaps they were forced to do this due to pressure from the DOJ?

I thought BitMit was based in Hong Kong?

[klintay]

yeah they are based in Hong Kong.

[psyclon]

This concerns me as I tried to pass on my brand new in box iPad I got for free well under what it's worth, but there were no takers.

Apparently, their jurisdiction has new regulations that apply to companies that hold customer funds, which they do because they provide escrow.

this is funny, must be something similar that prevented the pakistani/indian chungking mansion hostel owner from accepting my passport as a security when I offered if to him for non-payment. He said it was illegal for him to have it. On the other hand, he was more than happy to send on me his muscular friend and have my laptop taken until I paid up. Rule of law

[HalfPriceDigital]

BitMit shut down after the site lost 15 coins due to someone at their hosting company "hacking" them.  However, I think that offering an unlicensed escrow service may have been another reason that they shut down.  If you want to know more about the closure of BitMit this article has the info http://www.coindesk.com/bitmit-bitcoin-auction-sale-after-theft/

[Duetschpire]

I'm too sure about a license for bitcoin escrow. You might all be right, but after checking myself for cryptothrift, I found that I do not need a license due to the fact that bitcoin is not classified as a currency yet in most countries. So technically, they wouldn't be holding "funds".

Could be wrong though, just saying.