Feeds

back to article OKPay suspends payment processing to all Bitcoin exchanges

With mounting pressure on online money exchanges from US regulators, payments processor OKPay has announced that it is suspending processing for all Bitcoin exchanges, including industry leader Mt. Gox. OKPay itself has had precious little to say publicly about the decision, other than issuing a one-line statement on its website …

COMMENTS

This topic is closed for new posts.
Anonymous Coward

Don't worry Bitcoin holders....

Don't worry Bitcoin holders, I hear the Glacitbanks are still trading Bitcoin for the Trigantic Pu - exact change only: you cannot expect them to deal with fiddling small change.

2
2
Bronze badge

Re: Don't worry Bitcoin holders....

From this basic premise, it is very simple to prove that the Galactibanks are also the product of a deranged imagination.

0
1
Anonymous Coward

Re: Don't worry Bitcoin holders....

Perhaps I can be of some help. I have these pobble-beads.....

0
1
Bronze badge

ALL banks

All banks are the product of a deranged imagination, including the one in [Dads Army].

0
1
Silver badge

Bitcoin is a reaction

to the immoral and unaccountable duopoly on online payments held by Visa and Mastercard. These two companies, who operate beyond any public accountability, get to decide who can make a living on the Internet or not. When they played their ace with Wikileaks, the world woke up to this fact and started looking for alternatives. On top of this, there then appeared the spectre of these companies wanting to sell account holders' purchase histories to advertisers, which brought payment tracking to the fore.

Bitcoin offered a way around these problems. With Bitcoin, anyone can get paid, whether the banking powerbrokers like it or not. With Bitcoin, you can keep your purchase history to yourself. And it is this that the big payment processors don't like - the loss of control, and the loss of access to market data.

Governments and LEAs would be less concerned because in the end, you still have to convert Bitcoins back into "real money" to realise its value. At which point your local revenue service or LEA can tap you on the shoulder and ask "Excuse me, where did you get all this money from?". They can hit you for tax on it as soon as you do so. And simply saying "I converted it from Bitcoins" won't cut it - you still need to have an audit trail. If you claim to have "mined" the Bitcoins, you might need to show you have the computing infrastructure to do this. If government agencies really want to dig, they can find out where the money ultimately came from if they really want to. Their only interest is enforcing taxation and money-laundering laws. It is the payment processors who are really being hurt by Bitcoin, and they thus have an incentive to lobby governments to do something about it.

So you can bet that it is more companies like Visa, Mastercard and Paypal behind this anti-Bitcoin push than any government tax department or LEA.

9
4
Silver badge

Re: Bitcoin is a reaction

Not necessarily. The point of money is to turn it into goods and services.

I might be quite happy to have some part of my wealth in a form that I can convert into books/music/computers/airline tickets etc without it ever being changed into dollar/euros or pounds

It used to be a common trick here in the frozen north. You contract for a US company but are resident in Canada and pay taxes in Canada on any money your bring back. Of course any money you leave in your US bank account and then use your US visa card to buy groceries in Canada doesn't get taxed. Just an unofficial version of the Jimmy Carr scheme

1
0
Silver badge
Stop

Re: Bitcoin is a reaction

Nobody is really being hurt by bitcoin, it's neither big or useful enough. Take off the tinfoil hat. Actually don't take of the hat, the other bitcoiners wouldn't recognise you as one of their own....

1
2
Silver badge

Oh dear

That's what I get for my "meh" reaction to Dwolla. I'm now hit by the OKPAY suspension. This is getting stupid. Can't they just not process US Citizens at all? And OKPAY, unlike Liberty Reserve, does ask for official ID.

Sheesh!

1
0
Gold badge

Where is Bitcoin?

I wonder if Bitcoin will find it's the opposite to normal internet businesses, where you can pick your legal jurisdiction? This is just a thought, I claim no legal knowledge.

But could the US courts not decide that some portion of all Bitcoin transactions take place in the USA because of the block-chain mechanism where all transactions are processed by the whole pool of computers that are busily mining away? In which case all countries could take the same attitude. Thus Bitcoin would be subject to regulation by everyone, rather than just picking somewhere with friendlier regulation and being sited there.

Although that may not matter, given there is no single person in charge - but you could have the bizarre situation where anyone in the world making Bitcoin transactions would be subject to the financial oversight of whichever governments chose to take an interest, and suddenly international travel could become quite complicated, without getting arrested every five minutes.

Otherwise the US government would have to resort to chasing the payment processors used by the Bitcoin exchanges, if they choose to try to have a go at it. Which is a bit like playing whack-a-mole.

My personal suspicion is that none of this will happen. Bitcoin will likely go back to being a tiny niche activity pursued only by enthusiasts, and most people will forget about it. Even if it was the best idea in the world, there's a lot of competition out there from other currencies, which are backed by inertia, governments, economies of scale, tradition, and expectation. As I think it's a pretty bad idea, subject to many problems, I suspect that a few more public oopses will destroy any credibility - now that the media are likely to notice them.

1
1

Mining indeed

" that are busily mining away"

They're not mining, they're processing. Mining is a very emotive term that makes Bitcoin seem more valuable.

When you say mining you think men in hard hats, deep underground, pulling gold from the earth.

The reality is its just someone starting a program. There is zero mining involved, just processing.

Whenever a cointard claims "mining", I correct them with "processing".

6
2
Silver badge

Re: Mining indeed

These days you should picture somebody staring at a computer screen while an automated scoop loads ore into an automated tram which drives to dump it in an automated crusher.

Sometimes these are 1000km away, sometimes just a few 100m below you.

1
0
Gold badge

Re: Mining indeed

Interesting point. Seeing as how the people who push Bitcoin in forums sound incredibly similar to the "gold-bugs" that also regularly occur on them, it seems kind of appropriate.

I don't know which is worse. The complete, pig-headed inability to confront evidence or the simultaneous belief that there is no volatility in their blessed gold/Bitcoin and when there is massive volatility this is all down to a conspiracy of Goldman Sachs / Governments / The World Banking Cartel / The Bildeberg Group / The Illuminati / whoever...

3
2
Anonymous Coward

Republic credits?

Republic credits are no good out here. I need something more real.

2
0
This topic is closed for new posts.