Mt.Gox Temporary Suspending U.S. Dollar Withdrawals - Essay Example

The popular Bit Coin trading platform MT.Gox has announced on June 20th, 2013 that they will temporarily suspend withdrawals in the USD currency. According to a press release from MT.Gox the reason is the increased volume of requests, that has made it difficult for their bank to process the withdrawals.

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If this is the full truth is questionable, as MT.Gox had problems with a frozen “Dwolla” account just a few months ago. Dwolla is a US-only mobile payments service that is often used by Bit Coin traders. The Homeland Security has frozen their account while accusing MT.Gox of selling unlicensed securities and operating an unlicensed money transmitting business.

The possibility is high that MT.Gox has again gotten into trouble with authorities and the reason given in the press release is pure nonsense. The Bit Coin currency has gotten under authorities radar, as it is a virtual currency that is impossible to be controlled and everyone can do with it what he wants. In addition to that, none of the trading platforms is properly licensed to conduct its business.

I believe that it is very dangerous to use Bit Coins nowadays, as there is a high possibility for further actions against the trading platforms. It is also possible that sooner or later the use of Bit Coin will be blocked at ISP level by several countries. Below is the official press release published by MT.Gox:

Over the past weeks Mt. Gox has experienced rising volumes of deposits and withdrawals from established and upcoming markets interested in Bitcoin. This increased volume has made it difficult for our bank to process the transactions smoothly and within a timely manner, which has created unnecessary delays for our global customers. This is especially so for those in the United States who are requesting wire transfer withdrawals from their accounts. We are currently making improvements to process withdrawals of United States Dollar (USD) denominations, and as a result are temporarily suspending cash withdrawals of USD for the next two weeks. Please be reassured that USD deposits and transfers to Mt. Gox will remain unaffected, as will deposits and withdrawals in other currencies, and we will be resuming USD withdrawals once the process is completed. We apologize for any inconvenience this causes our U.S. customers in the meantime, and look forward to resuming withdrawal service as well as debuting a dramatically improved trading engine which will be launching very soon.
Regards
Mt.Gox Co. Ltd Team.