The rising popularity of Bitcoin and other virtual currencies is not easily accepted. Not only governments that questions its legality, long-established payment systems too, are seemed uncertain in deciding what to do with it. Last week, reports came out that Neteller has revised its Terms of Use, and now prohibits transactions with virtual currencies.

The rising popularity of Bitcoin and other virtual currencies is not easily accepted. Not only governments that questions its legality, long-established payment systems too, are seemed uncertain in deciding what to do with it. Last week, reports came out that Neteller has revised its Terms of Use, and now prohibits transactions with virtual currencies.

Neteller Axed Bitcpoin

 

Prohibited Transaction

Neteller new terms of use for its members, effective from 4 July 2014, includes virtual currencies under the list of Prohibited Transactions, along with dubious investment schemes and illegal activities. The following is the full statement from Neteller new terms:

“Prohibited Transaction” means any of the following types of transactions: (i) any pyramid selling, ponzi schemes or similar multi-level marketing, or matrix programs or other “get rich quick” schemes or high yield investment programs; (ii) the sale or supply of any illegal items or items which encourage or facilitate illegal activities; (iii) the sale or supply of counterfeit products; (iv) third party processing or payment aggregation products or services; (v) using NETELLER to facilitate the trade, exchange, purchase or sale of Bitcoins, or any other virtual currency. We reserve the right, in our sole discretion, to add categories of prohibited transactions by adding such categories either to these Terms of Use or an acceptable use policy published on the Website.

 

A Step Back

The Isle of Man-based ewallet company move is a step back from recent development in Bitcoin world. With Russia at last reevaluate its ban on financial companies to hand Bitcoin, the crytocurrency has at last seen growing legal acceptance. However, Coindesk stated that the developments of a Bitcoin environment in the Isle of Man is 'undeterred'.

The reason behind Neteller decision is still unknown. Following the widespread use of Bitcoin and its fellow virtual currencies, some have said that the advance of Bitcoin threaten the established virtual payment system such as PayPal and Neteller. But it is also possible that Neteller decision is simply due to virtual currencies dubious legal standing. Furthermore, the virtual currencies' anonymous nature makes it relatively difficult to trace back the suspect of fraud and such. Again, we are reminded that the existence of virtual currencies could only develop further along with better safety, security, and legality.

Regardless, the impact of Neteller decision might influence bitcoin exchanges, its clients, and virtual payment systems as a whole. The move indicate the possibility of other ewallets to axe virtual currencies too. After all, it is certainly a better choice than unwitingly get dragged into legal disputes.