In doing this, certain operational and regulatory issues came up including some that apply to new credit unions like ours. Our credit union has worked within the evolving regulatory environment, which has not always been easy.
This is a long not a short road and sometimes with detours. Until we have further clarity, we are unable to service some of our corporate members. On a positive note, we are finding all involved are interested in a stable environment for bitcoin and other innovative technologies.
The exchange first launched in early Junebut reported anomalies with Dwolla payments the following month. The company was back with a vengeance, though, in March of this year when it launched Prime — a B2B digital currency exchange.
However, it hasn’t been smooth sailing since then.
On the day Tradehill relaunched, US financial regulator FinCEN released its regulation on virtual currencies, which confirmed that anyone selling units of a decentralised virtual currency to another person for real currency or its equivalent should be categorised as a money transmitter. This guidance applies to businesses days after they begin trading in bitcoin, so Tradehill has until mid-September to get its paperwork in order.
CoinDesk contacted both Tradehill and IAFCU but had not received comment at the time of publication, so it is not known what Tradehill’s next steps are.
He has pledged to open a new site once these issues have been resolved. Bitcoin is a cryptographically secure currency that operates without a central authority. While users can conduct transactions entirely in Bitcoins, the ability to convert easily between Bitcoins and more conventional currencies has helped to fuel the currency’s popularity.
In recent months, users have relied on two websites to trade Bitcoins for dollars, euros, and other conventional currencies. The leading exchange is a Japanese site called Mt. TradeHill, an American company, was its biggest competitor. Kenna cited two factors in the decision to close TradeHill.
One was “increasing regulation.