Ewallet service provider and subsidiary of payment giant Optimal Payments, NETELLER, is lashing out against virtual currencies and now strictly prohibits its use in its revised terms-of-service.
NETELLER’s new terms-of-service have added to its list of prohibited transaction types the term “virtual currency”. What the inclusion of virtual currencies into NETELLER’s terms means is that any type of action related to Bitcoin and other internet based currencies such as Litecoin and Dogecoin are not allowed.
“[…] using NETLLER to facilitate the trade, exchange, purchase or sale of bitcoins, or any other virtual currency”_ the new addition to NETELLER’s TOS.
NETELLER, located on the Isle of Man, has been a staple payment method in high regulated industries, focusing primarily on gaming and gambling. It’s interesting to see such a service step away from Bitcoin and co. especially after mainstream success with large online retailers such as Overstock, TigerDirect and NewEgg.
According to Paul Davis, a barrister and solicitor with Isle of Man-based Group General Counsel, the move is not surprising. Davis believes NETELLER is taking the route many other payment firms are taking, by avoiding any future regulation and perceived risks that may follow.
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“In truth NETELLER is a global company, and its presence in the UK, Canada, Bulgaria and other places around the world is much greater than its physical operation on the Isle of Man. Neither the Island nor its financial regulator would seek to impose an obligation on a licensee to service any particular vertical; rather the island’s stance is that it is open to quality digital currency businesses who are welcome on our shores,” Davis added.
Another interesting note is that the Isle of Man welcomes Bitcoin and digital currency based companies to set up base on the island. The Isle of Man even facilitates an incubator for Bitcoin startups, established by local businesses looking to foray into digital currencies.
NETELLER’s dismissal of virtual currencies may come from a sense of competition, feeling Bitcoin and other currencies like it can put an end to its traditional Ewallet and money transfer services.