Coinpayments.net, an online payments provider for cryptocurrencies, has announced that they are being forced to shut down due to FinCen. They then sold themselves to Cycloid, “a trusted member of the Bitcoin community”:
“Update: CoinPayments.net has been sold to a trusted member of the Bitcoin community, Cycloid. His team will be running the site by March 31st and CoinPayments will continue operations without any interruption.”
One of their claims to fame was their support of Nxt payments, becoming the first payment processor to accomplish this feat for a coin of non-Bitcoin derived codebase.
Their original impassioned announcement appears as follows under the help section:
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“It is with a heavy heart that we have to announce the closure of CoinPayments.net. FinCEN has ruled that Bitcoin is in their purview which would make us a money transmitter. We simply do not have the resources to register with FinCEN and most of the 50 states as a MSB and comply with all of the AML/KYC laws (and no realistic way to raise the funds to do so.)”
New user registrations will not be accepted effective immediately. New transactions will be processed until March 24, and the site will shut down on March 31 as it moves to new ownership.
FinCen (Financial Crimes Enforcement Network) is a bureau of the U.S. Treasury that tracks and analyzes transactions for money laundering and criminal activity.
Other better-capitalized businesses have been able to pull off registration with all 50 states. The most prominent is San Francisco-based Coinbase. The following is a view on their status from FinCen’s website: