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Author Topic: Bitcoin Exchange Bank Account closures.  (Read 2486 times)
nibor
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January 13, 2012, 10:49:02 PM
 #1

I think that the biggest issue bitcoin has is the fact that the exchanges can so easily be closed done by banks.

I have started this thread to track all the instances.

Intersango.
4th Nov 2011 - HSBC closed GBP Account
https://bitcointalk.org/index.php?topic=50587.msg686637#msg686637

9th Jan 2012 - Lloyds closed/on hold GBP account
https://bitcointalk.org/index.php?topic=58598.0
And see Accounts page when logged in.
Officially just a technical issue, but not yet convinced.
http://bitcointalk.org/index.php?topic=58731.0

Fast Bitcoins
3 Nov 2011 Chase USD account closed
 https://docs.google.com/open?id=0B0tOdBpZt1ifMzRhMTMzZmItYWNlYS00YmUyLThjNWYtMDg0MGFlNjE0YTlj

MtGox
6 Dec 2011 Chase USD deposits closed
https://mtgox.com/press_release_20111017.html
Apparently at MtGox request. But would seem strange for an exchange to want to reduce the
number of ways customers can pay cash into their accounts.

TradeHill - Citibank USD account issues
https://bitcointalk.org/index.php?topic=56599.0

WBX account frozen in November 2011.
https://www.worldbitcoinexchange.com/?page=news


Thanks to posters below for contributing some of the above.


Please only add examples where you have a reference or document.

If list gets long will put on wiki.
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rjk
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January 13, 2012, 10:59:29 PM
 #2

MtGox
6 Dec 2011 Chase USD deposits closed
https://mtgox.com/press_release_20111017.html
(Is this correct? I assume it is as can not see Chase as an option in MtGox now?).

I think according to this press release, they stopped such transfers themselves, to reduce scrutiny while they apply for a special money transfer license. Not closed at random by Chase.

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Serge
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January 13, 2012, 11:00:36 PM
 #3

Fiat demands to play by its rules. There are no shortcuts, that is why we see such results outlined in OP.

you cannot handle and process 3rd party funds without special money handling licenses

i'm not surprised one bit
Raoul Duke
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January 13, 2012, 11:03:34 PM
 #4

Think like someone who steals from internet banking:

1- Forget about money mules
2- Wire money to Bitcoin Exchanges
3- Buy Bitcoin
4- Sell Bitcoin elsewhere
5- Profit

CIYAM
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January 14, 2012, 08:05:17 AM
 #5

WBX account frozen in November 2011.

https://www.worldbitcoinexchange.com/?page=news

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nibor
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January 16, 2012, 10:27:04 PM
 #6


Thanks everyone - have updated my first post.
beep
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January 16, 2012, 11:03:08 PM
 #7

As a bitcoin noob this is the thing that stands out to me as well.

I tend to believe the exchanges are the victims of the banks but do we know this is the case?

These exchanges seem to be very powerful really.   If they are the ones who can control whether or not an individual can withdraw their funds to a "real" currency then the possibility that they could be corrupted must be a pretty big threat to bitcoin as a whole. 

But I'm still learning. I may well read something tomorrow that convinces me that this aspect is really safe and then get paranoid about something else instead..
PrintCoins
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January 16, 2012, 11:05:58 PM
 #8

The exchanges are running an illegal operation according to the USA if you look at the verdict from the e-gold case:

http://en.wikipedia.org/wiki/E-gold

This is why they are not operating in the USA. The long arm of the law could shut down their USA based accounts and prevent wires from going to them.

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January 16, 2012, 11:16:29 PM
 #9

The exchanges are running an illegal operation according to the USA if you look at the verdict from the e-gold case:

http://en.wikipedia.org/wiki/E-gold

This is why they are not operating in the USA. The long arm of the law could shut down their USA based accounts and prevent wires from going to them.
Complete and utter BULLSHIT.

https://campbx.com/faq.php ...

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finway
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January 17, 2012, 01:25:51 AM
 #10

Don't be paranoid,bitcoin is too small to take actions for banks.

repentance
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January 17, 2012, 01:45:34 AM
 #11

Mt Gox also had their Techocash accounts closed, a PayPal account frozen pre-Tibanne, and their French bank accounts frozen.

It's not just with banks that the exchanges are at risk of having the accounts in which they hold user funds frozen.  Whenever they're passing user funds through a licensed financial services provider of some sort, they're up against AML and KYC laws as well as fraud detection practises in general.  That's even without any issues related to the exchanges themselves operating in a grey area.  The more points through which funds must pass to get from user to the exchanges and back, the greater the chance that one of the financial institutions/payment processors will flag the exchange transactions as "suspicious" under their risk management policies.

The exchanges themselves have acknowledged that banking offshore - one of the solutions often - suggested would create another set of problems which would make users unhappy.

All I can say is that this is Bitcoin. I don't believe it until I see six confirmations.
Yankee (BitInstant)
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Charlie 'Van Bitcoin' Shrem


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January 17, 2012, 03:13:34 AM
 #12

We've also had our share of account closures and frozen.

Honestly, navigating the failed banking system in order to make buying/seling bitcoin is the worst thing to be doing, but its a necessary evil at this point.

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the founder
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Bitcoin


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January 17, 2012, 03:24:46 AM
 #13

you want the feds off your back?  

Treat bitcoins like Silver and not gold.

Silver is used as currency AND x-ray machines AND parts for your electronics AND solar panels... etc...

Gold is just a currency for the most part.

If we had bitcoins used for 4000 differing things,  like DRM or whatever.. it would completely diffuse why people use bitcoins into a much wider pool... it also would solidify the fact that bitcoins are a commodity not a currency...  and hence completely sidesteps many of the issues that we are running into (and will run into).







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Yankee (BitInstant)
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Charlie 'Van Bitcoin' Shrem


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January 17, 2012, 03:35:23 AM
 #14

you want the feds off your back?  

Treat bitcoins like Silver and not gold.

Silver is used as currency AND x-ray machines AND parts for your electronics AND solar panels... etc...

Gold is just a currency for the most part.

If we had bitcoins used for 4000 differing things,  like DRM or whatever.. it would completely diffuse why people use bitcoins into a much wider pool... it also would solidify the fact that bitcoins are a commodity not a currency...  and hence completely sidesteps many of the issues that we are running into (and will run into).



I agree, bitcoin as a commodity as opposed to a currency is MUCH easier.

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finway
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January 17, 2012, 03:39:22 AM
 #15

Why not just get qualified?

RandyFolds
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January 17, 2012, 03:44:49 AM
 #16

Gold is just a currency for the most part.

Nope. Gold is used in a ton of industrial processes. Probably not as big as silver, but still very much a player.

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Phinnaeus Gage
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January 17, 2012, 11:03:18 PM
 #17

Gold is just a currency for the most part.

Nope. Gold is used in a ton of industrial processes. Probably not as big as silver, but still very much a player.






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