Bitinstant- Paxum Temporarily Suspended

[Serge]

Official statements:
http://gfy.com/showpost.php?p=18753403&postcount=1
http://gfy.com/showpost.php?p=18753657&postcount=22

It's very telling that, even though they have accounts here, they posted that thread there, but not here. I'd respect them more if they would have said that they rejected us to our face, so to speak.

they would rather post on a forum that calls itself gofuckyourself

classy, Paxum, real classy

with all due respect, the board name has nothing to do with it. there are simply more threads and discussion about paxum service among members of that board than it's been here. also by your logic you having account on that board isn't classy too by association. stupid comment.

[BitPay Business Solutions]

good point Serge.  i do post there, but I'm really surprised how that crowd is so anti-bitcoin.

They are also very supportive of Paxum on that thread.  Most of the webmasters I know would like to get away from Visa/MC and their stupid rules and fees if they could.

[Serge]

good point Serge.  i do post there, but I'm really surprised how that crowd is so anti-bitcoin.

They are also very supportive of Paxum on that thread.  Most of the webmasters I know would like to get away from Visa/MC and their stupid rules and fees if they could.

Tony, I think adult biz simply is not ready yet to embrace Bitcoin.

In regard to Paxum news - it's not good news personally for me as it was the most convenient method for me to move funds to bitcoin exchanges, but I do respect their decision or better put, them being pressured by their banking partners to discontinue service related with bitcoin exchanges, it's a loss for Paxum as well for bitcoin community. Hopefully they will be able to overcome their bitcoin hurdles with their banking partners in the future.

[BitPay Business Solutions]

Tony, I think adult biz simply is not ready yet to embrace Bitcoin.

They have a natural distrust of payment processors, I understand that whole mess.

But the benefits of being open source should get some attention, you would think?

By the way, we met Steve in Vegas.  nice guy.

[ArticMine]

I searched the FINTRAC site http://www.fintrac-canafe.gc.ca/intro-eng.asp for Bitcoin and found one reference http://www.fintrac-canafe.gc.ca/publications/watch-regard/2011-10-eng.asp from April - June 2011. The section on Bitcoin starts with

" Bitcoins: a new anonymous digital currency and a potential vehicle for criminals to transfer money: According to investigators, an emerging digital currency named "Bitcoin", intended to allow people to send money without the use of payment processors or other financial institutions, could also be a method used by criminals to make anonymous international transactions. ..."

The question is why now? Since this advisory Paxum started accepting Credit Cards as a funding source in November 2011, and I suspect that latter has a lot more to do with their decision to close Bitcoin related accounts than a 7 month old FINTRAC advisory. It is a lot easier to spread FUD about Bitcoin than to admit they were breaking Credit Card processing rules.

[paraipan]

I searched the FINTRAC site http://www.fintrac-canafe.gc.ca/intro-eng.asp for Bitcoin and found one reference http://www.fintrac-canafe.gc.ca/publications/watch-regard/2011-10-eng.asp from April - June 2011. The section on Bitcoin starts with

" Bitcoins: a new anonymous digital currency and a potential vehicle for criminals to transfer money: According to investigators, an emerging digital currency named "Bitcoin", intended to allow people to send money without the use of payment processors or other financial institutions, could also be a method used by criminals to make anonymous international transactions. ..."

The question is why now? Since this advisory Paxum started accepting Credit Cards as a funding source in November 2011, and I suspect that latter has a lot more to do with their decision to close Bitcoin related accounts than a 7 month old FINTRAC advisory. It is a lot easier to spread FUD about Bitcoin than to admit they were breaking Credit Card processing rules.

maybe they we're forced to make a deal if they wanted to have that scraped...

[ArticMine]

maybe they we're forced to make a deal if they wanted to have that scraped...

I would not be surprised if Paxum had to make more than one deal in order to keep their merchant account.

[paraipan]

maybe they we're force to make a deal if they wanted to have that scraped...

I would not be surprised if Paxum had to make more than one deal in order to keep their merchant account.

me thinks the banks have all of us by the balls 

[BitPay Business Solutions]

me thinks the banks have all of us by the balls 

that's what the banks think.  it will just drive more people to hold onto the bitcoins and not sell them.

[bitcool]

me thinks the banks have all of us by the balls 

Not all banks in all countries are the same, some are more open minded than others.
Don't forget about local and community currencies, even many states have started planing their own gold/silver backed currencies....
The train has left the station, they can't stop it.

[Yankee (BitInstant)]

The fact of the matter is, the larger Bitcoin gets the more of a threat it becomes. The people and institutions that share the most to lose will do everything in their power to stop it.

Wether Paxum decides to fold this early is up to them, and I will do everything in my power to keep them on our side.

....This is war boys, stop wining, strap in and get to work.

[finway]

The fact of the matter is, the larger Bitcoin gets the more of a threat it becomes. The people and institutions that share the most to lose will do everything in their power to stop it.

Wether Paxum decides to fold this early is up to them, and I will do everything in my power to keep them on our side.

....This is war boys, stop wining, strap in and get to work.

I guess it is.

[paraipan]

The fact of the matter is, the larger Bitcoin gets the more of a threat it becomes. The people and institutions that share the most to lose will do everything in their power to stop it.

Wether Paxum decides to fold this early is up to them, and I will do everything in my power to keep them on our side.

....This is war boys, stop wining, strap in and get to work.

I guess it is.

acknowledged, back to the battle stations 

[cbeast]

The fact of the matter is, the larger Bitcoin gets the more of a threat it becomes. The people and institutions that share the most to lose will do everything in their power to stop it.

Wether Paxum decides to fold this early is up to them, and I will do everything in my power to keep them on our side.

....This is war boys, stop wining, strap in and get to work.

I guess it is.

acknowledged, back to the battle stations 

If that's all they got, the war will soon be over.

[evoorhees]

Lots of speculation on this, but it seems simple enough to me.

Paxum mentioned Mastercard was part of the discussion, as well as "other banking partners." Those people must understand Bitcoin is a threat. Very easy for them to say, "hey Paxum, please don't work with Bitcoin" and Paxum says, "okay." If it was a new government regulation, they would've pointed to it specifically so as to take the blame off themselves. No such specificity was mentioned, meaning its far more likely an internal policy brought about by pressure from their partners.

An open-source, fee-less payment system must scare the shit out of traditional payment network operators. If it doesn't, then they're not paying attention. Logical and reasonable for Paxum, at the behest of its influential partners, to drop Bitcoin.

As Yankee said... strap in and get to work. This is war.

Edit: just closed my account with them. THAT'LL show 'em.

[finway]

Lots of speculation on this, but it seems simple enough to me.

Paxum mentioned Mastercard was part of the discussion, as well as "other banking partners." Those people must understand Bitcoin is a threat. Very easy for them to say, "hey Paxum, please don't work with Bitcoin" and Paxum says, "okay." If it was a new government regulation, they would've pointed to it specifically so as to take the blame off themselves. No such specificity was mentioned, meaning its far more likely an internal policy brought about by pressure from their partners.

An open-source, fee-less payment system must scare the shit out of traditional payment network operators. If it doesn't, then they're not paying attention. Logical and reasonable for Paxum, at the behest of its influential partners, to drop Bitcoin.

As Yankee said... strap in and get to work. This is war.

Edit: just closed my account with them. THAT'LL show 'em.

I bet you're right.

[Herodes]

Good luck in sorting it out!

[Steve]

As much as it's entertaining to think MasterCard is scared of the competition from Bitcoin, the explanations that it is about the risks involved in allowing the purchase of cash-like things on credit makes sense.  It's basically a way to get a cash advance without immediately incurring interest…people can take advantage of the 1 month billing cycle if it were allowed.  Still, I think as bitcoin grows, it's likely that at least some banks will take a hostile stance toward bitcoin.  They may try to neutralize bitcoin as a competitive threat by cutting it off from the traditional banking system.

[bitcoinTrader]

Lots of speculation on this, but it seems simple enough to me.

Paxum mentioned Mastercard was part of the discussion, as well as "other banking partners." Those people must understand Bitcoin is a threat. Very easy for them to say, "hey Paxum, please don't work with Bitcoin" and Paxum says, "okay." If it was a new government regulation, they would've pointed to it specifically so as to take the blame off themselves. No such specificity was mentioned, meaning its far more likely an internal policy brought about by pressure from their partners.

An open-source, fee-less payment system must scare the shit out of traditional payment network operators. If it doesn't, then they're not paying attention. Logical and reasonable for Paxum, at the behest of its influential partners, to drop Bitcoin.

As Yankee said... strap in and get to work. This is war.

Edit: just closed my account with them. THAT'LL show 'em.

I also want to close the account.
What is the procedure?

What happens to the document we submitted during registration?

[Yankee (BitInstant)]

I wanted to point out one more thing:

An executive at Paxum has been working with me since this happend. They have been more surprised at this than we were. Not only that, but they have been super responsive and extremely helpful in this matter.
I harbor no bad feelings toward them. Licensing takes years to obtain but can take minutes to lose.

More and more information is coming to light and although I cannot go into details *yet* alot of what has been said above is not accurate.

Paxum and I have a few conference calls with their partners set up for this week and if all goes well, we can have this resolved and back online in 1-2 weeks

-Charlie