BitStamp to Hand Over Unverified Accounts to the Government

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BitStamp to Handle Over Unverified Accounts to the Government

ForexMinute.com – BitStamp recently issued a statement regarding the “unverified” nature of its customers’ accounts. The Bitcoin exchange said it is liable to hand those dark accounts to the government, if not verified within 28 days from the date of announcement.

Almost over a year ago, the Slovenia-based UK-registered exchange revived its policies in the wake of growing regulatory pressures. The object was to do business, but under the specifics of law. Hidden or unverified accounts not only increase the chances of money laundering, but also can be used to fund terrorism and other sorts of social norms.

But it seems that despite the regular warnings, some of the BitStamp users are still having positive balances in their unverified accounts, making this whole process illegal. It certainly poses serious threats for the Bitcoin exchange as well, as per the current UK laws. No wonder why the company has decided to sum up everything in the “FINAL NOTICE” to their masked customers.

“Failure to do so constitutes a breach of our Agreement and failure to remedy that breach,” warns the BitStamp open letter. “This will automatically result in the following: all unverified accounts holding a balance will be terminated, access rights will be removed, and the holders of these accounts will no longer be considered BitStamp customers.”

Most of the cryptocurrency users find Bitcoin and other digital currencies to be a perfect escape from taxation and everything that requires a government stamp. The arrival of altcoins like Darkcoin and Monero, and services like DarkWallet has further intensified the anonymity-offering sector. It is quite brave of BitStamp to swim against the tide, especially in the midst of huge competition. They have openly warned the unverified customers that they will simply seize their amounts and will hand them over to regulatory authorities.

What’s your take on this? Does falling under the government jurisdiction stop cryptocurrency sector to create an alternative payment world? Do share your opinions.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com