CampBX Has Been Dropped By Their Bitcoin Fearing Bank; They’ve Halted ACH And Wire Transfers In And Out

Posted 3 months ago

 

According to an interview with CampBX’s CEO back in May of 2013, CampBX has always aimed to be the premier regulatory compliant US-based fiat-Bitcoin exchange in the world.  They have successfully registered as a money transmitter on both the federal level and the state level and they are based in Alpharetta, Georgia.  CampBX’s CEO claims to spend between sixty and seventy-five percent of funds on regulatory compliance and has revealed that several thousand users have already failed CampBX’s verification process.  CampBX files quarterly reports including suspicious activity and large transaction reports that other exchanges might not be proactively doing at this point in time.

How is it that such a compliant Bitcoin business has been dropped by their bank?  It is a fair assumption that CampBX’s previous banking partner was aware of the Bitcoin-related nature of CampBX’s business when they first entered into a business arrangement; why then, has the bank changed their mind?

CampBX reveals that:

Our ACH and Wire provider has made a business decision to not work with Bitcoins and Bitcoin companies due to regulatory uncertainty and recent spate of negative news for Bitcoin.

Well, “regulatory uncertainty” has always been uncertain so in reality the bank’s only reason is the “recent spate of negative news for Bitcoin.”

Undoubtedly the still-unfolding Silk Road drama has created more people afeared of Bitcoin.  It is unfortunate that banksters are among said people.  It is doubly unfortunate that Bitcoin fearing banks have revealed their weakness yet again by refusing to work with even the most compliant of US Bitcoin exchanges.

Despite having to halt withdrawals and deposits of fiat indefinitely, the exchange will remain in otherwise-normal operation.

Well the good news is you can still withdraw and deposit Bitcoin with ease, unlike at Mt. Gox.

Where can CampBX find a new banking partner?

Maybe CampBX can get some help from BitPay, also based out of Georgia, USA.  Failing that, it is possible that banks and Bitcoin’s tenuous relationship will be mended yet.

From what we can see, Wells Fargo is not a Bitcoin fearing Bank, and in fact Wells Fargo is leading discussion on the rules of engagement between Bitcoin and banks.  The recent summit headed by Wells Fargo may be the first step in Wells Fargo’s acceptance of Bitcoin-involved businesses.  After all, headquartered in San Francisco, Wells Fargo should not be missing out on the current Bitcoin craze in Silicon Valley.

Below is an image of the posting just announced by CampBX on their facebook page:

campbx ach update

CampBX has fallen victim to a Bitcoin fearing Bank


submit to reddit

Get daily news delivered to your email!

6 Responses

  1. Spotted Marley

    This is why it’s such fantastic news that Mastercoin is launching the first decentralized exchange in March. Bitcoin is already fixing this issue!

    Reply
  2. Stephen Reed

    Suppose that CampBX is not a licensed money transmitter in all fifty states? It appears to be a circumvention of US law for any US bank to assist a bitcoin exchange that performs dollar transactions on behalf of a retail customer residing in an unlicensed state.

    Why should any bank risk breaking federal law even if the bitcoin exchange acts in accordance with AML/KYC regulations.

    Kraken, I believe is pursuing enough money transmitter licenses at the State level, to avoid this obvious bank objection.

    My argument in no way diminishes the notion that conventional banking as we now know it, will be swept away by a new bitcoin enabled, efficient and more capable infrastructure, and bankers are probably right from their selfish perspective to repress bitcoin.

    Reply
    • Avatar of Caleb Chen
      Caleb Chen

      Thank you for your comment Mr. Reed! Indeed CampBX is not registered in all 50 states, but then again neither is Coinbase or BitPay as far as I know. Even in the current murky regulatory waters there are banks that are sticking their necks out, because of greed, to Bitcoin companies.

      Reply
  3. Bitcoin VOX

    It would be interesting to see how CampBX move forward and who they will work with. Nice to see you back Caleb.

    Reply
    • Avatar of Caleb Chen
      Caleb Chen

      I’d bet on it that they’ll be able to find a banking partner sooner rather than later. Thanks so much for your comment, I’m glad to know I was missed!

      Reply

Leave a Reply