OKPay to stop processing transfers to/from all Bitcoin exchanges

[phorensic]

This hit my Facebook feed a few minutes ago:

Hello all. We've released a statement regarding OKPay's intention to stop processing transfers to/from all Bitcoin exchanges, including Mt. Gox. For all of our customers using OKPay, please take a look and understand your options: https://mtgox.com/pdf/20130528_okpay_statement.pdf

This is the status for the time-being, but we're hoping for positive developments in the future.

Yikes.

[keatonatron]

Wow. Recently options for moving money in and out of bitcoins have been shrinking. The opposite of what you would expect for an economy that is growing!

Luckily it just means more room for new entrepreneurs to get it right...

[WackyWilly]

Yikes!! indeed.

Though I don't know how much OKPay accounts for volume wise, this is again one of those nasty little developments added to the list.

I wouldn't be surprised to see -at a certain point in time, so with the benefit of hindsight, of course...- that this OKPay withdrawal is just another part of the tactical manouevres undertaken by Government institutions to crack down on Bitcoin.  Would the Japanese be next to hit MtGox big time (and thereby trying to hit BTC as they would like to sell you their "lovely deflationary yen" as an alternative   ? )

Yes, I think BTC will survive such Government crackdown, but the only question is: in what shape will it be afterwards?
We'll see.

[ninjaboon]

Wow shocker for this Terrible Tuesday.
Anybody know the stand of the Japan Govt in dealing with Bitcoins?

[Zaih]

Not ideal...

[andrewsg]

Could someone offer an informed summary on OKPAY - who used it and why was it a desirable choice compared to say wire transfers?

[wonkytonky]

never thrusted okpay.. 
wiretransfer ftw

[Hawker]

Could someone offer an informed summary on OKPAY - who used it and why was it a desirable choice compared to say wire transfers?

If you live in UK and want to send money to BTCE, they insisted you use OKPay as an intermediary.  Annoyingly, when I tried it, I sent a test amount of £100 and OKPay charged 4% commission to receive it.  I'm trying to get it back now but their website has some fault.

[redwraith]

Could someone offer an informed summary on OKPAY - who used it and why was it a desirable choice compared to say wire transfers?

OKpay was the easiest way to send money to BTC-e. 

[keatonatron]

Would the Japanese be next to hit MtGox big time (and thereby trying to hit BTC as they would like to sell you their "lovely deflationary yen" as an alternative   ? )

The Japanese don't care about bitcoin. Not enough users in Japan yet.

[TimJBenham]

that this OKPay withdrawal is just another part of the tactical manouevres undertaken by Government institutions to crack down on Bitcoin.  

Is there any evidence for that? or is that your TFH talking?

[Matthew N. Wright]

that this OKPay withdrawal is just another part of the tactical manouevres undertaken by Government institutions to crack down on Bitcoin.  

Is there any evidence for that? or is that your TFH talking?

It's cultist thinking. They told me that their bank just closed the account because of too much traffic basically. It made them nervous. They're looking for a new bank to work with. Governments have bad qualities, banks have bad qualities, but I still don't understand how people think that whatever happens from banks is necessarily a conspiracy against bitcoin. I've run a payment services provider before (DialCoin). You have to be *insanely* paranoid about every cent going through it, because that money can put your company in jail. I don't blame banks for being banks, it's their business model that's broken.

[TimJBenham]

It's cultist thinking. They told me that their bank just closed the account because of too much traffic basically. It made them nervous. They're looking for a new bank to work with.

Any banking system to BTC gateway is a way for scammers and hackers to cash-out. Banks don't like that, especially when the funds were stolen from one of their account holders.

[Hawker]

It's cultist thinking. They told me that their bank just closed the account because of too much traffic basically. It made them nervous. They're looking for a new bank to work with.

Any banking system to BTC gateway is a way for scammers and hackers to cash-out. Banks don't like that, especially when the funds were stolen from one of their account holders.

"Withdrawals to OKPay accounts will not be cut immediately, but will only be
allowed up to the amount that OKPay users have deposited into Mt. Gox via
OKPay."

Looks like you have hit exactly on why the account was frozen.

[WackyWilly]

that this OKPay withdrawal is just another part of the tactical manouevres undertaken by Government institutions to crack down on Bitcoin.  

Is there any evidence for that? or is that your TFH talking?

You should read a bit more carefully: I am only posing a possibility.

[BitcoinAshley]

Short term: Slight decline or no effect (in fact I think we've already seen the 'worst' of it)

Mid term: Lower prices on exchanges that rely the most on OKPay, higher prices on exchanges that may or may not use OKPay but have other funding options that are used. Could BTC-e price get any lower? Arbitrage folks will have a field day with this.

Face it, any "BIG BOY" trader who has the power to move the market will have multiple funding routes and multiple exchanges in case one screws up. The little cats will have to wait a week to KYC with somebody else or find a good OTC hookup but they don't have as much of an effect on the markets anyways.

Long term: Price go up uP UP because harder to get = lower supply but same and rising demand = more expensive bitcoins!

inb4 "Lol but making it harder to get bitcoinz means less people will want to use them! In the world of economics, lower supply automatically leads to lower demand, thus making the supply/demand law of economics completely useless! I r smart & know economicz"

[kokojie]

Wow. Recently options for moving money in and out of bitcoins have been shrinking. The opposite of what you would expect for an economy that is growing!

Luckily it just means more room for new entrepreneurs to get it right...

you mean moving funny money out of bitcoin (real money).

[ElectricMucus]

This sucks, okpay was the most convenient cash option.

[ElectricMucus]

Short term: Slight decline or no effect (in fact I think we've already seen the 'worst' of it)

Mid term: Lower prices on exchanges that rely the most on OKPay, higher prices on exchanges that may or may not use OKPay but have other funding options that are used. Could BTC-e price get any lower? Arbitrage folks will have a field day with this.

Face it, any "BIG BOY" trader who has the power to move the market will have multiple funding routes and multiple exchanges in case one screws up. The little cats will have to wait a week to KYC with somebody else or find a good OTC hookup but they don't have as much of an effect on the markets anyways.

Long term: Price go up uP UP because harder to get = lower supply but same and rising demand = more expensive bitcoins!

inb4 "Lol but making it harder to get bitcoinz means less people will want to use them! In the world of economics, lower supply automatically leads to lower demand, thus making the supply/demand law of economics completely useless! I r smart & know economicz"

This doesn't really affect supply nor demand for Bitcoins. The number of Bitcoins for sale stays the same, as well as the number of people who want to buy them. What can change however is the OTC premium.

[Rampion]

that this OKPay withdrawal is just another part of the tactical manouevres undertaken by Government institutions to crack down on Bitcoin.  

You simply do not "crack down" on Bitcoin.

It's about time financial institutions and their sockpuppets (the Governments) grow up some balls and officially outlaw Bitcoin, so they can face the harsh reality: Bitcoin is resilient to bans and regulation by design.

Anyhow I think they know it, so they won't make us the favour to ban Bitcoin - they know they would have lost the battle from the very beginning, so they will try to play their cards in a different way.