BitGold.com does not allow US customers to use its service - why?

[No_2]

BitGold.com does not allow customers in the US to use its services.

Please note: At this time US residents are not able to send or receive payments

Can anyone shed light on to why this may be? I'm particularity interested in any legal reasons for this.

[gentlemand]

Onerous regulation? There are tons of financial businesses that reject americans. With facta and needing money transmitter licences for every state you want to operate in that costs millions it's simply not worth it.

[No_2]

..With facta and needing money transmitter licences for every state...

Can you site any sources which summaries this, I was vaguely aware that money transmission businesses needed a licence per state.

Also when you say FACTA do you mean that BitGold would have to report all it's credit rating information to the three major US credit agencies?

[gentlemand]

Whoops. I meant FATCA - foreign account tax compliance act. That requires all non US financial institutions to report back to the US treasury about US customer assets and balances. Most of them have chosen to shut out Americans altogether because of that including Americans living permanently abroad.

Not sure where to point you about the money transmitter stuff, but even some of the biggest US based exchanges aren't in every state yet, let alone the ones abroad.

[Dalkore]

Regulation, that have been gunning for those types of service since eGold.

eGold:
http://www.economicpolicyjournal.com/2013/04/bitcoiners-remember-what-happened-to.html