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US Deparment of Homeland Security shuts down Mt. Gox transactions on Dwolla, regulation of Bitcoin is planned.
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Many US players would consider Bitcoin the tool to bypass US federal law. Considering it is an anonymous and not “real” currency, even though maintaining real value, it could provide a shortcut for online poker in the US market, at least for global sites that accept it as a deposit currency. Most recently, iPoker’s WinPoker skin made it available as a payment method.
Bitcoin’s current USD exchange rates:
However, the US authorities now aim to keep Bitcoin from being used in such a way, not only to counter illegal online poker in the country but also to fight illegal transactions and money laundering.
“The Department of Homeland Security appears to have shut down the ability to use Dwolla, a mobile payment service, to withdraw and deposit money into Mt. Gox, a Bitcoin trading platform,” Betabeat.com reported.
“Chris Coyne, cofounder of OKCupid, posted a screenshot of an email he received from Dwolla, stating that due to recent orders from the Department of Homeland Security, Dwolla cannot complete the bank transfer to Mt. Gox,” they wrote. A Dwolla representative confirmed the situation but was unable to provide further details and encouraged those affected to contact. Mt. Gox or the Department itself.
The e-mail in question reads as follows:
Mt. Gox replied to Betabeat’s questions as reads here:
"Thank you for the email. We can see that the Dwolla transactions are not getting processed right now. We will contact Dwolla and post an announcement regarding this. Your patience is appreciated till then.”
Later, they posted to their Facebook page the comment below:
“Like many who have contacted us, MtGox has read on the Internet that the United States Department of Homeland Security had a court order and/or warrant issued from the United States District Court in Maryland which it served upon the Dwolla mobile payment service with respect to accounts used for trading with MtGox. We take this information seriously. However, as of this time we have not been provided with a copy of the court order and/or warrant, and do not know its scope and/or the reasons for its issuance. MtGox is investigating and will provide further reports when additional information becomes known.”
For sure, the District Court in Maryland initiated the actions of the so called Blue Monday, during which the domain names of Doylesroom.com and other poker as well as sports betting sites were seized and their money transfer services shut down.
In addition, Bitcoin is considered a “problem” by the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), who say that it is not only enabling illegal gambling but also many other illegal business activities. Therefore, a regulation and control of the currency, similar to other normal platforms, is planned.