Topic: MtGox generation of USD redeemable codes will stop at 10 Apr 2013 (Read 12958 times)

MtGox ToS limit you to one account, so this is risky.  I wouldn't be surprised if their anti-fraud algorithms flag stuff like location, either - meaning that an account will be flagged if you log in from a different country, for instance.

There is one workaround and that is to create throwaway accounts.

So you create an account specifically with the intention of sharing the username and password with your trading party.  You wouldn't want the account to get flagged as needing verification so the amounts you would hold in it would need to be under the levels that non-verified accounts are allowed to transfer.

This lets you lock in a certain amount of USDs and transfer that value as dollars to someone else by giving the username and password to them.  Then that person completes the verification steps to withdraw the dollars  (or use the funds to buy bitcoins at a later time).   Since most people already have a Mt. Gox account, trying to get verification on a second account at Mt. Gox would likely bring closer scrutiny and/or [Edit: be a violation of their user agreement and possibly] see the funds getting frozen.  

Also, there's the chance the person who funded the account will claim the account was lost due to identity fraud (hacker gaining username/password) after trading it away and possibly regain access to the funds.   So this isn't a method two parties who don't have trust in each other would want to follow.

But it might be a way to separate off some bitcoins into multiple accounts, convert them to dollars to lock in a certain amount of value in USDs, and then later trade those USDs away.

That's nowhere near as convenient as the redeemable codes, but it is an option.

Of course, other exchanges still have account-to-account (A2A) transfers, if the need is simply a USD-denominated store of value that can be easily transferred to and from BTCs:
 - http://en.bitcoin.it/wiki/A2A_Transfer_Methods

FFS

Whoah ... that's different.  Not just MTG USD and MTG CAD but all "non-BTC" codes it says.

And I looked just now and there's not even a method to withdraw a BTC code, at least as far as I can tell.

Damn, I used to used USD codes quite a bit to pay people when the price was so damn volatile like now; oh well, guess it's back to BTC and BTC Codes.

You can still transfer via BTC...

I just received an email too:



No more free SEPA deposits and withdrawals on bitcoin-otc

If you have bitcoins in Mt Gox and want to cash out to Paypal use https://fastcash4bitcoins.com/

So if I may sound like a newbie for a moment...

"How will I get my coins from Mt Gox -> BitInstant -> Paypal?"

Will there be another Code?  Will I use another service?

I cant find any info on either of the sites pages with about 2 weeks before this deadline.


Anyone got an answer?

-elrodvoss

they are probably rolling out a new wave of force-verifications(aka stealing, err "holding" customers money hostage and forcing them to verify in order to retrieve their funds back), like they did back in the october-January 2011/2012 times. those that they have already forced to verify can simply be moved off, and all others can probably be established by geoip, since most people are probably using gox via their regular ip in order to avoid force verification.

 - Received Dwolla?  Ding.  U.S.
 - Submitted ID and it says U.S?   Ding.  U.S.  (or submitted Canadian,  CAN)
 - Access via U.S. or Canadian IP address?    Ding.  U.S. or Canada.

It's 80% of Mt. Gox's customer base (not sure if that is by number or by value of accounts).

10 April expect 100 new threads per minute: "WTF why doesn't my Gox code work?" and "Why do I have to resubmit all verification to Coinlab I already did this through Gox years ago"

[/quote]


That's interesting. So how do they know who's a US customer? ID scans for all an sundry? IP geolocation? Simply trusting their customers to be honest?

+1

Silk Road has already proven the concept. It could also be argued that SR bootstrapped a large part of Bitcoin's early demand and value. Bitcoin already has proven value outside of the regulatory structure.

The powers that be can't destroy Bitcoin so they'll own it and subvert the price instead. Those that desire wealth over doing the right thing and those that live in fear of the don't-break-any-rules-or-we-might-get-caught boogie man are the ones that will help bind and carry Bitcoin to its new masters.

You can always count on greedy and fearful people to fuck up a good thing.

Evidence that Bitcoin is now being regarded as a currency by anyone who has the power to regulate currencies.

Likewise, burying one's head in the sand and saying "I can't hear you" leaves Bitcoin businesses vulnerable to regulatory action.  Businesses who do not recognise and plan for this have only themselves to blame.  If they choice to ignore risks they know exist, then both the businesses themselves and their customers need to accept the possible consequences.  Bitcoin businesses in general have neither the enormous resources of an e-Bay backing them in their legal battles (which PayPal actually lost), nor can they afford to simply write off seizures as a "cost of doing business" like organised crime.

People do not have to believe the government is good in order to want to avoid the consequences of breaking its laws.  Nor does anyone have the right to demand that someone else take the risks involved with setting up unregulated services.  Lead by example if you believe so strongly that someone should take those risks out of pure altruism.  Go open an underground exchange on an onion site accessible only by Tor and let us know how it turns out.

I honestly think that everything associated with the transition to CoinLab needs to be getting a lot more publicity at this point, otherwise it's going to turn into a clusterfuck.  It sounds like US customers will need to redeem their other currency codes prior to 10 April. 

There also needs to be an active drive to get people to agree to CoinLab's ToS before 29 March, otherwise there are going to be endless "WTF is going on" threads when the transition happens and people who haven't visited the forums/used MtGox in a while suddenly find out everything's changed.

Just a bit more on this.


So, after April 10th, if you are in the U.S. you will have the ability to send MTGox BTC redeemable code, but not MTGUSD, MTGEUR, or any other currency.

Also, I see that AurumXChange (issuer of VouchX codes) is now handling redeemable codes issued by BTC-E and BITSTAMP as well.

Also related:

MTGUSD Redeemable Code - The End Is Neigh
 - http://www.bitcoinmoney.com/post/44860726799

Sad news to hear such a convenient feature won't be available anymore... then again like Severian said, more bitcoin interaction wouldn't be such a bad thing now would it?

Coinbase has nothing to do with this.  It's Coinlab who will be servicing MtGox's US and Canadian customers.

It's also MtGox who has decided they don't want to deal with the crap associated with USD transactions - they want out of the US market, so this is just part of that process.  I suspect people would be whining even more if MtGox closed off their services to US customers entirely rather than transferring those customers to an intermediary.  At least this way they can insulate MtGox itself and its non-US customers from the risks associated with servicing the US market while still allowing US customers to trade on MtGox.  It would have been far, far worse for US customers had they just withdrawn from the market entirely.

Wow that's too bad. That kinda puts bitinstant out of business, doesn't it?

thanks! now found in bottom left corner )

If you can't see your own link under the last post in the topic, here it is: https://bitcointalk.org/index.php?action=movetopic;topic=151081.0

I can’t find here any tool to move topic... or you mean I need open another in  "..\ Marketplace > Service Announcements" section?

Thanks a bunch, coinbase.

This might drive the price of bitcoins up as people will have to do more trading on the blockchain rather than via gox codes.

move topic > https://bitcointalk.org/index.php?board=84.0

Redeemable code = ability to transfer money between accounts = you're a bank or a payment institution.
Took them quite some time to realize that

it seems users on MtGox starts to receive this letter since yersterday. It comes right after you generate USD code.

This is kinda bad news... On the other hand I didnt get that memo?

I got this letter today from [email protected]
-------------------------------------------------------------
Dear ######,

You are currently making use of a system which will be deprecated on Wed 10 Apr 2013 12:00:00 AM GMT:
Generation of USD and CAD redeemable codes will not be possible due to legal issues

Please note that after this date, using this system won't be possible anymore and will instead lead to an error.
Thank you for your attention.

System Staff
--------------------------------------------------------------

Any suggestions what are the "legal issues" and what they a going to do instead redeemable codes?