MtGox generation of USD redeemable codes will stop at 10 Apr 2013

[o_dima]

I got this letter today from system@tibanne.com
-------------------------------------------------------------
Dear ######,

You are currently making use of a system which will be deprecated on Wed 10 Apr 2013 12:00:00 AM GMT:
Generation of USD and CAD redeemable codes will not be possible due to legal issues

Please note that after this date, using this system won't be possible anymore and will instead lead to an error.
Thank you for your attention.

System Staff
--------------------------------------------------------------

Any suggestions what are the "legal issues" and what they a going to do instead redeemable codes?

[vdragon]

This is kinda bad news... On the other hand I didnt get that memo?

[o_dima]

it seems users on MtGox starts to receive this letter since yersterday. It comes right after you generate USD code.

[davout]

Redeemable code = ability to transfer money between accounts = you're a bank or a payment institution.
Took them quite some time to realize that

[TheButterZone]

move topic > https://bitcointalk.org/index.php?board=84.0

[Severian]

This might drive the price of bitcoins up as people will have to do more trading on the blockchain rather than via gox codes.

[2weiX]

Thanks a bunch, coinbase.

[o_dima]

move topic > https://bitcointalk.org/index.php?board=84.0

I can’t find here any tool to move topic... or you mean I need open another in  "..\ Marketplace > Service Announcements" section?

[TheButterZone]

If you can't see your own link under the last post in the topic, here it is: https://bitcointalk.org/index.php?action=movetopic;topic=151081.0

[o_dima]

thanks! now found in bottom left corner )

[crazy_rabbit]

Wow that's too bad. That kinda puts bitinstant out of business, doesn't it?

[repentance]

Thanks a bunch, coinbase.

Coinbase has nothing to do with this.  It's Coinlab who will be servicing MtGox's US and Canadian customers.

It's also MtGox who has decided they don't want to deal with the crap associated with USD transactions - they want out of the US market, so this is just part of that process.  I suspect people would be whining even more if MtGox closed off their services to US customers entirely rather than transferring those customers to an intermediary.  At least this way they can insulate MtGox itself and its non-US customers from the risks associated with servicing the US market while still allowing US customers to trade on MtGox.  It would have been far, far worse for US customers had they just withdrawn from the market entirely.

[anzy]

Sad news to hear such a convenient feature won't be available anymore... then again like Severian said, more bitcoin interaction wouldn't be such a bad thing now would it?

[Stephen Gornick]

Just a bit more on this.

Does that mean I can still create and redeem a MTGEUR code after April 10th?

I just got this answered on #mtgox IRC:

<MagicalTux> as US customer, it will not be possible to have a balance in anything else than BTC/USD/CAD

So, after April 10th, if you are in the U.S. you will have the ability to send MTGox BTC redeemable code, but not MTGUSD, MTGEUR, or any other currency.

Also, I see that AurumXChange (issuer of VouchX codes) is now handling redeemable codes issued by BTC-E and BITSTAMP as well.

Also related:

MTGUSD Redeemable Code - The End Is Neigh
 - http://www.bitcoinmoney.com/post/44860726799

[repentance]

I honestly think that everything associated with the transition to CoinLab needs to be getting a lot more publicity at this point, otherwise it's going to turn into a clusterfuck.  It sounds like US customers will need to redeem their other currency codes prior to 10 April. 

There also needs to be an active drive to get people to agree to CoinLab's ToS before 29 March, otherwise there are going to be endless "WTF is going on" threads when the transition happens and people who haven't visited the forums/used MtGox in a while suddenly find out everything's changed.

[Severian]

There are two big reasons why Bitcoin people are tempted to go ‘legit’:

    1. They want to get mega-rich fast, like Mark Zuckerberg.
    2. They have been trained to be obedient and can’t unlearn it. They are compelled to believe that the government is basically good. It must just be one bad politician or one bad law.

#2 is what destroyed e-gold, and it looks like #1 is what killed GLBSE.

Because of GLBSE, Bitcoin is now being regarded as a currency and states will start to regulate it as one. That means that they’ll attack the public exchangers and force everyone possible to comply with their rules.

How Bitcoin Is Being Destroyed

[repentance]

There are two big reasons why Bitcoin people are tempted to go ‘legit’:

    1. They want to get mega-rich fast, like Mark Zuckerberg.
    2. They have been trained to be obedient and can’t unlearn it. They are compelled to believe that the government is basically good. It must just be one bad politician or one bad law.

#2 is what destroyed e-gold, and it looks like #1 is what killed GLBSE.

Because of GLBSE, Bitcoin is now being regarded as a currency and states will start to regulate it as one. That means that they’ll attack the public exchangers and force everyone possible to comply with their rules.

How Bitcoin Is Being Destroyed

Evidence that Bitcoin is now being regarded as a currency by anyone who has the power to regulate currencies.

Likewise, burying one's head in the sand and saying "I can't hear you" leaves Bitcoin businesses vulnerable to regulatory action.  Businesses who do not recognise and plan for this have only themselves to blame.  If they choice to ignore risks they know exist, then both the businesses themselves and their customers need to accept the possible consequences.  Bitcoin businesses in general have neither the enormous resources of an e-Bay backing them in their legal battles (which PayPal actually lost), nor can they afford to simply write off seizures as a "cost of doing business" like organised crime.

People do not have to believe the government is good in order to want to avoid the consequences of breaking its laws.  Nor does anyone have the right to demand that someone else take the risks involved with setting up unregulated services.  Lead by example if you believe so strongly that someone should take those risks out of pure altruism.  Go open an underground exchange on an onion site accessible only by Tor and let us know how it turns out.

[Severian]

Go open an underground exchange on an onion site accessible only by Tor and let us know how it turns out.

Silk Road has already proven the concept. It could also be argued that SR bootstrapped a large part of Bitcoin's early demand and value. Bitcoin already has proven value outside of the regulatory structure.

The powers that be can't destroy Bitcoin so they'll own it and subvert the price instead. Those that desire wealth over doing the right thing and those that live in fear of the don't-break-any-rules-or-we-might-get-caught boogie man are the ones that will help bind and carry Bitcoin to its new masters.

You can always count on greedy and fearful people to fuck up a good thing.

[TheButterZone]

I honestly think that everything associated with the transition to CoinLab needs to be getting a lot more publicity at this point, otherwise it's going to turn into a clusterfuck.  It sounds like US customers will need to redeem their other currency codes prior to 10 April. 

There also needs to be an active drive to get people to agree to CoinLab's ToS before 29 March, otherwise there are going to be endless "WTF is going on" threads when the transition happens and people who haven't visited the forums/used MtGox in a while suddenly find out everything's changed.

+1

[rebuilder]

<MagicalTux> as US customer, it will not be possible to have a balance in anything else than BTC/USD/CAD

[/quote]


That's interesting. So how do they know who's a US customer? ID scans for all an sundry? IP geolocation? Simply trusting their customers to be honest?