Not to break the circle-jerk, but he was arrested for money laundering related to illegal purchases on Silk Road. Just because he used Bitcoin put him in no greater risk.

I do not know the details of this guys case. It is my opinion that the feds will not let this currency fly and people will not only loose money by end up in world of hurt.

Arrest yes, it needs bad stuff evidence. But to have the bank pull you or freeze your funds (just the bank, not any police or law), it is enough to have anything to do with bitcoin - according to lots of banks.
Most or all the adult sites use bitpay.com , not because they are unable to develop a bitcoin payment page (it is not complicated, needs to host bitcoind etc.), but because keeping separate entity and bank for bitcoin and fiat money.
As someone noted, I would be afraid to keep same bank and name for bitcoin and visa/mc, since banks are so easy to freeze funds, kick out whoever is known to have transacted bitcoins for whatever legal reason.

Can you cite specific banks, press releases, news articles, etc? If so, this is incredibly timely and relevant to many of us here. My bank (Wells Fargo) as well as brokerage assist me with moving in and out of different accounts, with full knowledge that it's for cryptocurrencies.

Hi,

We are in the early stages of looking at all possibilities. Obviously we will not get in to anything risky.

Mitch

Going out of town for a few days will hit you up when i get back. Got you on skype all ready:thumbsup

I'd be interested in seeing you implement it.

Well specific to bitcoin exchanges there's lots of press about them having lost accounts, but this is generic bitcoin exchanges for 3rd parties no one knows what they do:

http://www.forbes.com/sites/kashmirh...bank-accounts/

Regarding non-exchangers, personal accounts, I know from some banking people that bitcoin transactions had to be "flagged" or reported, not remember the term it was used, this was for USA sometime in 2013. These practices, different for each bank, may change and standardise with the time.

Also note the fact you can't chargeback on bitcoin it can give also issues in ecommerce for refund i.e. user buy your service with bitcoin then asks refund in fiat cash, uses you as a money exchanger letting you money launder for him:

http://pando.com/2014/01/10/the-chal...ccept-bitcoin/

Is there a source for this? I can say the Attorney General told me he was personally going to suck off every Bitcoin investor. Doesn't make it true.


I'm unclear as to why Bitcoin not being able to be charged back is a BAD thing. Generally, high-volume merchants are honest, while consumers are not, when it comes to disputes.

If you choose to provide a refund, why would you give it in fiat currency? PayPal refunds get credited back to PayPal. This point doesn't make a ton of sense.

Current U.S. law is that Bitcoin IS money. The courts and the recent memorandum say that if you mine it (income) or invest in it (capital gains), just pay your taxes. It was pretty clear, at least for the foreseeable future.

Not attacking you specifically, but there are a bunch of people in this thread who apparently don't keep up with court decisions and regulatory advisories. They're shitting on a forward-thinking tool for adult that'd help a lot of people. Honestly, this is why people don't get excited about innovating for the half-wits in adult.

Incidentally, here's FinCEN's new advisory:

http://www.coindesk.com/fincen-bitco...-transmitters/

Awesome news for those of us with large mining investments and crypto holdings.

Please keep us posted as progress is made.

I sure will.

Great news ! We just started accepting BTC with Bitpay but it would be very handy to use Netbilling for that.

I read coindesk daily too and today we got:

Bank Stops Working With Bitcoin Exchange CampBX Due to ?Regulatory Uncertainty?
http://www.coindesk.com/bank-stops-w...y-uncertainty/

The issue is not the government but the banks. They're private companies and can kick you out this way on surprise.

Glad to see Netbilling inquiring about this. I really hope to see you guys allowing customer payments from bitcoins and affiliate payouts thru bitcoins too :thumbsup

Perhaps the simple solution for Netbilling to avoid this is to keep it simple and only do bitcoin payouts, no exchange to dollars.

Yes, getting bitcoins from user address and passing-on bitcoins to adult site address should be nothing banks will care at. But not all the netbilling customers may like to get paid in bitcoin, getting cash may be more nice. In that case I would simply use a different bank for the bitcoin thing, so if account it is closed it does not interfere with visa/mc main flow.