Dwolla freezing all financial transfers related to bitcoins?!

[mechs]

https://i.imgur.com/tT1xHTJ.jpg
I just got this email today after I initiated a bank transfer to fund my Dwolla account. I had previously used dwolla to buy bitcoins on localbitcoins, and had also transferred fundsto camp bx.  Anyone else have this issue before?  This will be a killer for both of these US services - looks like stuck with coinbase and their high fees.

[TippingPoint]

making it visible



So "peer-to-peer virtual currency exchange" is a no-no in the highly regulated FinCen world.  Don't try this at home.  These are highly trained professionals.

[eleuthria]

Has anyone seen this coming the other way (selling on exchange, redeeming into fiat through Dwolla)?

[Carlton Banks]

The presumptuous language they use never fails to appall me ("we appreciate your understanding"). I hope they appreciate their business circling the sinkhole.

[mechs]

The presumptuous language they use never fails to appall me ("we appreciate your understanding"). I hope they appreciate their business circling the sinkhole.

It really is a shame since CampBX has slowly been improving volume and narrowing their bid-ask spread.  Plus their fee of 0.55% is better than Coinbase's 1%, plus they usually have a lower price.  The disadvantage has been the three days to move funds from bank to Dwolla (from dwolla to campbx is near-instant).  Now, just to safe 0.45%, it not worth wiring funds or mailing them to CampBX - will just stick with coinbase.  This is great news for coinbase, bad news for campbx and bad for US Bitcoiners.

[justusranvier]

I hope they appreciate their business circling the sinkhole.

The only reason to use Dwolla is to buy and sell bitcoins. Without that, they have no business.

Since they legally aren't allowed to serve the only market that is interested in their services it's all over for them. The founders are just consuming what remains of their investors' money while waiting for the company to die.

[acoindr]

The presumptuous language they use never fails to appall me ("we appreciate your understanding"). I hope they appreciate their business circling the sinkhole.

It really is a shame since CampBX has slowly been improving volume and narrowing their bid-ask spread.  Plus their fee of 0.55% is better than Coinbase's 1%, plus they usually have a lower price.  The disadvantage has been the three days to move funds from bank to Dwolla (from dwolla to campbx is near-instant).  Now, just to safe 0.45%, it not worth wiring funds or mailing them to CampBX - will just stick with coinbase.  This is great news for coinbase, bad news for campbx and bad for US Bitcoiners.

CampBX supports ACH too.

We need to beef up those SatoshiSquares and localbitcoins.com as these are things that can't be regulated away, not easily anyway.

EDIT: actually the ACH is for withdrawals only.

[tclo]

Well Dwolla isn't saying you can't fund peer to peer bitcoin transactions, not Dwolla which is an exchange.

Of course they may extend it to that at some point, but doesn't seem to be the case now. 

I hope not because I love Dwolla with CampBX too and that's the only thing I use it for as well.

[Syke]

I don't understand. Aren't you just using Dwolla to transfer USD from one place to another? Isn't that the basic point of Dwolla?

[Lina.V]

The presumptuous language they use never fails to appall me ("we appreciate your understanding"). I hope they appreciate their business circling the sinkhole.

Sucks but you do have to understand. They do this or people with guns come and kick down their office door.

[mechs]

The presumptuous language they use never fails to appall me ("we appreciate your understanding"). I hope they appreciate their business circling the sinkhole.

Sucks but you do have to understand. They do this or people with guns come and kick down their office door.

After the whole Mt Gox drama, they are obviously being proactive to avoid any more supeonas and run-ins with the law

[smoothie]

Less business for them I guess.

 

[mechs]

I wonder if this news partially responsible for the weakness BTC  having today

[illpoet]

thats weird, i thought this was in effect months ago when ICE/homeland security/general govt oppression  said i couldn't cash from mtgox to dwolla. but yeah its tough for these companys, basically they have to alienate their customer base or risk going to jail.   god bless the usa.

[mechs]

thats weird, i thought this was in effect months ago when ICE/homeland security/general govt oppression  said i couldn't cash from mtgox to dwolla. but yeah its tough for these companys, basically they have to alienate their customer base or risk going to jail.   god bless the usa.

Well the Dwolla-Mt. Gox thing is old, but now Dwolla seems to pre-emptively be blacklisting CampBX and localbitcoins.com.  Basically, any known bitcoin trading venue.

[illpoet]

i see. It was actually really a boon for me when that happened as it sent me to localbitcoins.com and i found out i had some buyers/sellers really close and also really fair!  i encourage everyone to check it out!

[tclo]

Well the Dwolla-Mt. Gox thing is old, but now Dwolla seems to pre-emptively be blacklisting CampBX and localbitcoins.com.  Basically, any known bitcoin trading venue.

Since when?  Is my reading comprehension really poor or is yours?

Where do you get that Dwolla has a problem with transfers to and from CampBX?

[mechs]

Well the Dwolla-Mt. Gox thing is old, but now Dwolla seems to pre-emptively be blacklisting CampBX and localbitcoins.com.  Basically, any known bitcoin trading venue.

Since when?  Is my reading comprehension really poor or is yours?

Where do you get that Dwolla has a problem with transfers to and from CampBX?

Geez, you post in a thread without even reading it?  Check the first 2 posts in this thread.

[FullLife]

I hope they appreciate their business circling the sinkhole.

The only reason to use Dwolla is to buy and sell bitcoins. Without that, they have no business.

Since they legally aren't allowed to serve the only market that is interested in their services it's all over for them. The founders are just consuming what remains of their investors' money while waiting for the company to die.

This is definitely not true.  Most payment processing services (like PayPal) just piggy-back on credit card processing networks and simply pass on the processing fees to the consumer.  Dwolla is working on building their own processing network that will compete directly with any service that uses these credit card processing networks.

Here's a great article to further understand what Dwolla is working towards:  http://www.businessinsider.com/this-28-year-old-is-making-sure-credit-cards-wont-exist-in-the-next-few-years-2011-11?op=1

[niko]

I hope they appreciate their business circling the sinkhole.

The only reason to use Dwolla is to buy and sell bitcoins. Without that, they have no business.

Since they legally aren't allowed to serve the only market that is interested in their services it's all over for them. The founders are just consuming what remains of their investors' money while waiting for the company to die.

This is definitely not true.  Most payment processing services (like PayPal) just piggy-back on credit card processing networks and simply pass on the processing fees to the consumer.  Dwolla is working on building their own processing network that will compete directly with any service that uses these credit card processing networks.

Here's a great article to further understand what Dwolla is working towards:  http://www.businessinsider.com/this-28-year-old-is-making-sure-credit-cards-wont-exist-in-the-next-few-years-2011-11?op=1

...which makes them, in the long run, a competitor of Bitcoin. You should see their actions and excuses in the light of that fact.