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Mt. Gox Forces Users to Verify Accounts After Government Crackdown
Mt. Gox Changes the Rules
Part of the excitement about Bitcoin is the enabling of anonymous transactions. But this capability also has caused some concerns amidst government crackdown on other anonymous exchanges, namely Liberty Reserve that has been accused of massive money laundering.
So Mt. Gox is Changing the rules. Going forward, all users must have verified accounts. Here’s the announcement.
Statement Regarding Account Verifications
The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers. It our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.
As a result, beginning May 30th, 2013 all Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals. Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.
In the past two months Mt. Gox has invested in more than doubling our verification support staff, and we are currently able to process most verifications within 24~48 hours.
We apologize for any inconvenience this may cause. Please visit the Security Center in your Mt. Gox account if you are not already verified, and keep in mind that being careful to submit the proper documents will result in a much faster processing time.
Regards
Mt.Gox Co. Ltd Team.
Seattle Mayor Mike McGinn Calls for Innovation Leadership with Mention to Bitcoin
Seattle Mayor Gives Special Mention to Bitcoin at Packed Event
At a a re-election fundraiser breakfast, Seattle Mayor Mike McGinn said to a packed crowd “We can lead here in Seattle!” The diverse crowd cheered as Mayor McGinn discussed his open-minded approach to meet with any and all groups who are interested in making Seattle a better place.
He shared his vision of a future-oriented and forward-looking Seattle where technology and innovation, social issues, and environmental policies go hand in hand.
“I am always meeting with new groups,” Mayor McGinn said. “I was even approached by a group interested in Bitcoin.”
What can Bitcoin do for Seattle? Share your thoughts with us #bitcoin #seattle.
Liberty Reserve Shut Down; What Will Happen to Bitcoin?
Liberty Reserve Shutdown; What About Bitcoin?
Online currency exchange Liberty Reserve was shut down after allegations of laundering $6 billion. The New York Times reported:
The currency exchange, Liberty Reserve, operated beyond the traditional confines of United States and international banking regulations in what prosecutors called a shadowy netherworld of cyberfinance. It traded in virtual currency and provided the kind of anonymous and easily accessible banking infrastructure increasingly sought by criminal networks, law enforcement officials said.
So, what is the impact on Bitcoin? Is Bitcoin next, some media outlets pondered. Well, there are a variety of opinions:
The New York Times reflected on the differences between Bitcoin and Liberty Reserve, commenting that Bitcoin is not anonymous yet, but could be.
Contrary to conventional wisdom, Bitcoin is not anonymous. In fact, security experts say that if prosecutions like Liberty Reserve continue, the most likely targets are major payment systems like WebMoney and eForexGold, payment systems that security experts contend allow their users to move capital anywhere in the world without verifying their identities.
The Washington Post saw more similarities between Liberty Reserve and Bitcoin.
Of course, that description could just as easily describe Bitcoin. Anyone can create a new address for accepting bitcoins and then transmit funds to other Bitcoin addresses without furnishing identifying information. This feature has raised concerns that the currency has been used for activities such as drug dealing or illegal gambling.
Forbes saw a canary in the coal mine, asking is Bitcoin next.
Will prosecutors move on to shutting down Bitcoin (BTC)? After all the parallels between BTC and LR are strong — both are virtual currencies that use an exchange to convert legitimate currencies into electronic ones.
Patrick Murck, legal counsel for the Bitcoin Foundation, wants to avoid that comparison. As he told the Journal, “I think [the Liberty Reserve indictment] is just another giant, flashing warning light to bitcoin exchanges: If you’re not compliant, there are some serious risks, both at the federal and state levels.
Bloomberg was more optimistic, pointing out that Liberty Reserve’s demise is Bitcoin’s gain.
Bitcoin users should embrace the extra scrutiny and welcome the chance to ensure more security, making the currency less accommodating to criminals. Plus, as some Reddit commenters were quick to point out, the demise of Liberty Reserve will mean less competition for Bitcoin.
That’s the round up for the major press outlets. What do you think?
Video Documentary: The Rise and Rise of Bitcoin
Documentary: The Rise and Rise of Bitcoin
“The genie is out of the bottle.”
“Satoshi is the Keyser Söze of the Internet.”
Those are a few choice quotes from the trailer for the upcoming documentary The Rise and Rise of Bitcoin.
Below is the official description:
Dan is a 35 year old computer programmer from Pittsburgh who lives a busy life. Along with balancing work, his marriage, and raising his three boys, Dan spends much of his time actively involved in all things Bitcoin. After discovering Bitcoin in 2011, his love and obsession for the crypto-currency was born, revealing an uncharted world of new possibilities for him to explore.
Join us as we take a journey through the rapidly growing world of Bitcoin. Along the way, we’ll follow the stories of entrepreneurs and startups that are helping shape the new financial frontier. We’ll look at the competitive mining market and the various subcultures within the Bitcoin community. You’ll encounter a variety of characters and opinions as we examine the social and political impact of an open-source digital currency. Will the rise of Bitcoin bring a monetary paradigm shift that will forever change the world?
And here is the trailer of the film, still in production.
Bitcoin Exchanges in Canada Won’t Be Regulated – Report
Canada Bitcoin Regulation Will Allow Exchanges to Operate
With all of the excitement about Bitcoin, there is also a concern that governments will try to regulate the flow and restrict anonymity. Well, the team at Pokerati has an extensive article suggesting that Bitcoin exchanges won’t be regulated in Canada. Here is a summary:
Canada’s federal anti-money laundering agency, FinTRAC, has publicly indicated that it will not regulate certain bitcoin businesses because they don’t view bitcoins as “funds” within the meaning of applicable Canadian law. Specifically, transactions on a bitcoin exchange in Canada between parties exchanging bitcoins for Canadian dollars and vice versa will not, according to FinTRAC, engage the Money Services Business rules in the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations. This could present interesting opportunities for those exploring new business models in the bitcoin space, but readers are cautioned that the federal Department of Finance might move to change the applicable regulations in future. This might be yet another instance of the law failing to keep pace with technology.
Read the full article “Canada Becomes Bitcoin Friendly.”
