Okay, this is news to me that c-gold is based in Malaysia.
I'm afraid that Malaysia isn't that free as you would think - the government has seized a couple of such companies in the past.
Please don't take this the wrong way, but have you been to Malaysia? I have spent quite a bit of time in Malaysia and while it may not be a first world country, the only country in that region with a stronger rule of law is Singapore. I'm not aware of any businesses that were operated in accordance with Malaysian law being seized. Note that a number of American firms have operated factories over there for decades (e.g. Western Digital and Seagate) which wouldn't make sense if it offered a hostile business climate.
Certainly there is more petty corruption in Malaysia than in most Western countries, but again with the exception of Singapore, it is better than all of its neighbors. And while there are some laws on the books (like the Internal Security Act) which make the government seem like it may be a bit draconian, they are really no worse that the Patriot Act in the United States. I can't think of too many things you can do in the United States which are prohibited in Malaysia (possibly private gun ownership), and there are definitely some things you can do there which are prohibited in the United States (e.g. you can buy steroids over the counter). Their labor laws are a bit screwy as well, but I think the same is true over here as well, depending on which state you're in and whether or not the labor is unionized.
The risk factors for c-gold are significantly different from those of bitcoin, which makes them complementary in my mind. If you want to run a DGC in a country that will offer you some protection from the US/G7, I can't think of many countries that offer a better haven. Certainly not Costa Rica, and Panama is also in the pocket of the United States. It might even be a decent place to open up a bitcoin exchange.
Hey, the C-gold HQ in Penang, Malaysia is actually only a few miles from my residence in Malaysia.
I've lived most of my life here so I guess I know the laws here well. Yeah, I agree with most of what you state above (steroids OTC, gun prohibition where the penalty is dead by hanging, petty corruption etc), and I'm proud to state that life here is indeed better then most of its neighbours. Singapore's pretty advanced technically and economically, but the life and food there sucks.
However, there's been a lot of e-gold-esque companies being shut down regularly. Most of them had connections to HYIP schemes/Nigerian scams by facilitating transactions for them, and whilst their money remittance service might be legit by Malaysian laws, they're still affected. There's been a ton of raids on those purported 'investment schemes' and illegal gambling (yes, gambling is illegal here - only a few heavily licensed casinos operate in the entire country) all over the country, where remittance methods like LR were extensively used too.
All and all, I still prefer Malaysia although it's not that free as compared to the States despite the limitations. *shivers with thoughts of cold Boston weather*
PS: The ISA is currently abolished some time ago.
