Neteller Payment System Drops Bitcoin

Published July 22, 2014 by Lee R

Neteller Payment System Drops Bitcoin

Bitcoin has lost an important currency market foothold.

In their new terms of service agreement, Neteller has banned the use of the virtual currency Bitcoin payment processor.

Service Ban

The revised terms of service now includes the prohibition of the use “of NETELLER to facilitate the trade, exchange, purchase or sale of bitcoins, or any other virtual currency.”

Isle of Man Friendly

NETELLER is based in the Isle of Man, a jurisdiction that is friendly towards Bitcoin.

The Isle of Man government website has in fact committed authorities to “take specific actions aimed at helping protect businesses and customers utilizing digital currencies and provide an environment for high-quality businesses in this rapidly emerging field.”

Virtual Currency: A Tough Sell

The field is emerging, but the notion of virtual currency replacing actual currency is spurious at best, akin to using poker chips or company scrip as actual currency, though each country has its own specific form of currency already.

Bitcoin is popular with online poker providers, so the resemblance to a poker chip system is inevitable—though in this case transcending national border and currency systems.

Virtual Currency Maturing?

Some have characterized the virtual currency market as entering a state of maturation, but what this means is not clear.

The virtual currency system is being more widely used, as evinced by new deals such as the Bitcoin only poker room, Bitcoin Poker's new agreement to allow players to enter all Winning Poker Network WPN tournaments.

Boom and Bust

SealsWithClubs is generally regarded as the most successful Bitcoin only game operator, but has actually experienced increased cash game traffic in the wake of last year's so-called “speculative boom and bust” in Bitcoin prices and investment.

The removal of Bitcoin by NETELLER looks to be a huge blow to the popularity and value of Bitcoin and virtual currency systems in general. Bitcoin has now lost what otherwise would be a ringing endorsement from one of the largest payment processors for online gaming in the world.

See also

Alternate Payment Methods

Neteller Booming with Industry

The Impact of Bitcoin on Online Gambling

Russian Government to Block Online Gambling Payment Methods

The Money Drops at 888 Games

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