CoinPayments.net was expecting to close down due to FinCEN allegations of “Money Transmitting” without the approval or license to do so. CoinPayments has responded by saying because they send money from “Sender X to Buyer Z”, although dealing with absolutely no fiat currency at all, they will have to discontinue service and foresee other payment processors in the future dealing with the same issue.
The crypto-community poured out their encouragement to the creators and crew of CoinPayments and expressed the unjust nature of FinCEN’s allegations. CoinPayments.net has been the leader for altcoin payments and many businesses revere their service – including Amagi! Here was the orginal message posted on their home page when the announcement was made:
“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.)
The shutdown will happen in 3 stages:
We will stop accepting new user registrations effective immediately.
We will stop processing new transactions at 11:59:59 PM EST on March 24, 2014 (transactions already in progress at that time will be completed).
The website will otherwise remain operational until 11:59:59 PM EST on March 31st, 2014 when it will be shut down.
Any refunds due must be requested by the end of March 31st, 2014 and any funds held in your account withdrawn. Keeping the website open for a week from the last new transaction should give everyone ample time to wrap up their affairs in the site.
We extend our sincerest apologies to all of our merchants and customers who have relied on CoinPayments for over 7 months.”
This bad news lived briefly. Shortly after the shutdown was announced, CoinPayments was purchased by a leader in the Bitcoin community – under the company name Cycloid. Operations were expected to be halted at the end of March, yet now there will be no interruptions with CoinPayments.net and Amagi Metals will happily continue accepting Litecoin and Dogecoin!
We’ll update you with any more news on CoinPayments management change, but rest assured your LTC and Doge are as good as gold around here!