Looks like BitLendingClub/LoanBase is closing

[ChrisLandin]

 
BitLendingClub Closing Soon Due to Regulatory Pressure


Dear Customers,
We've worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begint terminating the services effective immediately. Of course, we will maintain some minimal functionality in order to allow our existing users to repay their loans and withdraw their funds.

What Functionality Will Remain?
We will restrict the functionality of the website to either repaying a loan, depositing to repay or withdrawing funds. There will be no new registrations, loan requests, verification of new users, investments or anything else. Just repaying of the existing loans or withdrawal. 

When Will The Service Become Restricted?
We expect to begin restricting the functionality sometime next week. We don't have a specific date, but we will send out an e-mail when the change occurs.

How Long Will The Platform Remain Operational With Restricted Functionality?
The platform will remain operational with the limited functionality for 30 days after all loans are either repaid or written off (i.e. they have defaulted and are written off). After that we will be terminating the services completely.  The expected termination date is approximately August 2017. it may be earlier or later, but that's subject to change.

How Long Do We Have To Withdraw Our Funds? 
Users will be able to withdraw their funds up to 30 days after the last loan is repaid or marked as written off. We will completely terminate the platform 30 days after the last loan is repaid or written off. We recommend that you begin withdrawing your funds immediately.

Again, we're extremely sad to be delivering this news, but that's the reality of operating a business in the Bitcoin ecosystem. There are regulatory pressures, which make business extremely difficult and we have always done everything possible to be compliant with regulators. Given that we've reached the point where it is no longer feasible to run the platform and be compliant, we have decided to terminate the platform.

Best Wishes,
The BitLendingClub Team

 


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[1715558134]

1715558134

[BitcoinBarrel]

Unfortunate but not surprising considering the Loan business is huge money. Bitcoin loans are very practical and lower interest than credit cards and other traditional loans.

[Milkduds]

Regulative suppression was bound to happen,my big gripe is how unsafe every customers details are now that they are going out of business.
Actually not to sad to see sites like this go to way side anyways,it attracted a real leech element on both sides of the operations.

[ChrisLandin]

Regulative suppression was bound to happen,my big gripe is how unsafe every customers details are now that they are going out of business.
Actually not to sad to see sites like this go to way side anyways,it attracted a real leech element on both sides of the operations.

I'm really concerned that the wrong person gets the information. Hopefully they dispose of it correctly.

[ranlo]

Regulative suppression was bound to happen,my big gripe is how unsafe every customers details are now that they are going out of business.
Actually not to sad to see sites like this go to way side anyways,it attracted a real leech element on both sides of the operations.

I'm really concerned that the wrong person gets the information. Hopefully they dispose of it correctly.

From a lender PoV, this is a horrible situation. The rep there no longer matters. I don't think there's any reason for anyone to repay their loans at this point. Luckily, I'm not a lender there, but this spells a lot of trouble.

[ChrisLandin]

Regulative suppression was bound to happen,my big gripe is how unsafe every customers details are now that they are going out of business.
Actually not to sad to see sites like this go to way side anyways,it attracted a real leech element on both sides of the operations.

I'm really concerned that the wrong person gets the information. Hopefully they dispose of it correctly.

From a lender PoV, this is a horrible situation. The rep there no longer matters. I don't think there's any reason for anyone to repay their loans at this point. Luckily, I'm not a lender there, but this spells a lot of trouble.

I remember when they used to say "if you default it will end up on your credit report". What happened with that?

[CraigWrightBTC]

Loanbase didn't explained about the data costumers who has made registered on there, should they explaini about that what will doing with them, it is dangerous because the data costumers are private and can be blamed, for the other users or some body who know other info/updating new info please share on here.

[el kaka22]

I got this mail too  it is sad to see them go , they were a great bunch of guys and their platform helped a lot of people get loans and funds to start their bitcoin related business off to an easier start for what otherwise would be really hard to start.

[ranlo]

Regulative suppression was bound to happen,my big gripe is how unsafe every customers details are now that they are going out of business.
Actually not to sad to see sites like this go to way side anyways,it attracted a real leech element on both sides of the operations.

I'm really concerned that the wrong person gets the information. Hopefully they dispose of it correctly.

From a lender PoV, this is a horrible situation. The rep there no longer matters. I don't think there's any reason for anyone to repay their loans at this point. Luckily, I'm not a lender there, but this spells a lot of trouble.

I remember when they used to say "if you default it will end up on your credit report". What happened with that?

Did BLC/LB state that as well? I wasn't aware ANY crypto-based sites were able to do that, as it is a highly regulated market and the cost to get into it would be massive. The fact these guys are crumbling under "regulatory pressure" also makes me feel like this isn't true -- you wouldn't spend $10-50 million to get licensed if you didn't know exactly what you're doing.

[bitbunnny]

Another Bitcoin lending platform is closing. I've also heard that another platform had problems with previous owner who tried to scam the system and get the personal gain. Does this show that P2P Bitcoin lending system isn't sustainble? Does it need some changes?
What will happen now with lenders and borrowers on LBC, what this transit period realy means?

[weex]

Asking those of you who have taken out loans on sites like this....If getting a loan requires collateral btc be put up and held in multisig escrow will there still be demand or will it not work for some reason?

[ranlo]

Asking those of you who have taken out loans on sites like this....If getting a loan requires collateral btc be put up and held in multisig escrow will there still be demand or will it not work for some reason?

Why would you borrow funds if you can't use them? That kills the entire purpose of taking the loan in the first place.

[weex]

Asking those of you who have taken out loans on sites like this....If getting a loan requires collateral btc be put up and held in multisig escrow will there still be demand or will it not work for some reason?

Why would you borrow funds if you can't use them? That kills the entire purpose of taking the loan in the first place.

There are many reasons and ways to do a loan but it seems the risk is very high which translates into high interest rates plus platforms like this getting shut down. My question is about a way to make it safer that can still be done with bitcoin. Only question is if that can make any sense at all. Maybe it doesn't but maybe it does.

[favdesu]

not a bad thing to be honest. those lending sites are full of scammers and defaulters anyways.