According to an interview with CampBX’s CEO back in May of 2013, CampBX has always aimed to be the premier regulatory compliant US-based fiat-Bitcoin exchange in the world. They have successfully registered as a money transmitter on both the federal level and the state level and they are based in Alpharetta, Georgia. CampBX’s CEO claims to spend between sixty and seventy-five percent of funds on regulatory compliance and has revealed that several thousand users have already failed CampBX’s verification process. CampBX files quarterly reports including suspicious activity and large transaction reports that other exchanges might not be proactively doing at this point in time.
How is it that such a compliant Bitcoin business has been dropped by their bank? It is a fair assumption that CampBX’s previous banking partner was aware of the Bitcoin-related nature of CampBX’s business when they first entered into a business arrangement; why then, has the bank changed their mind?
CampBX reveals that:
Our ACH and Wire provider has made a business decision to not work with Bitcoins and Bitcoin companies due to regulatory uncertainty and recent spate of negative news for Bitcoin.
Well, “regulatory uncertainty” has always been uncertain so in reality the bank’s only reason is the “recent spate of negative news for Bitcoin.”
Undoubtedly the still-unfolding Silk Road drama has created more people afeared of Bitcoin. It is unfortunate that banksters are among said people. It is doubly unfortunate that Bitcoin fearing banks have revealed their weakness yet again by refusing to work with even the most compliant of US Bitcoin exchanges.
Despite having to halt withdrawals and deposits of fiat indefinitely, the exchange will remain in otherwise-normal operation.
Well the good news is you can still withdraw and deposit Bitcoin with ease, unlike at Mt. Gox.
Where can CampBX find a new banking partner?
Maybe CampBX can get some help from BitPay, also based out of Georgia, USA. Failing that, it is possible that banks and Bitcoin’s tenuous relationship will be mended yet.
From what we can see, Wells Fargo is not a Bitcoin fearing Bank, and in fact Wells Fargo is leading discussion on the rules of engagement between Bitcoin and banks. The recent summit headed by Wells Fargo may be the first step in Wells Fargo’s acceptance of Bitcoin-involved businesses. After all, headquartered in San Francisco, Wells Fargo should not be missing out on the current Bitcoin craze in Silicon Valley.
Below is an image of the posting just announced by CampBX on their facebook page: