Bitcoin: US Government Freezes Account of Largest Exchange

May 17th, 2013
in econ_news, syndication

bitcoinEconintersect:  This week the Department of Homeland Security (DHS) froze funds in the Dwolla account of Mt.Gox's U.S. unit, alleging that it had broken the law regarding money laundering.  Dwolla is an online payments firm, similar to the more widely known PayPal.  Mt. Gox is a Tokyo-based exchange that handles 80% of the global transactions of Bitcoins.

The specific changes that alleges the company and a subsidiary were conducting transactions "as part of an unlicensed money service business" that should have been registered with the Treasury's Financial Crimes Enforcement Network (FinCen).

Follow up:

DHS said the transactions at Mt. Gox should have subjected to the same anti-money-laundering rules as banks and other transaction services such as PayPal and Western Union.  For example, all transactions exceeding $10,000 should have been reported to the government.

According to The Wall Street Journal, the CFTC (Commodity Futures Trading Commission) is reviewing possible regulation of virtual currencies like Bitcoin.

There has been no word on how long the Mt. Gox accounts will be out of commission in the U.S.


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved