Crypto Valley Summit & Isle of Man Online Gambling

Published Thursday, September 18, 2014 -
Crypto Valley Summit & Isle of Man Online Gambling

Bitcoin has to have the most illustrious history of all currencies and the latest crisis for the virtual money has sparked a great deal of discussion at the Crypto Valley Summit. The two-day conference is focusing on the launch of a campaign that has the intention of making the Isle of Man a prime location for the bitcoin industry. The event was opened by the Isle of Man’s Lieutenant Governor, Adam Wood, who was positive about  the island’s ability to take advantage of the growing interest in digital currencies. Unfortunately just prior to the opening of the Summit the coinage was hit with a withdrawal of transactional services by HSBC. HSBC Holdings plc is a British multinational banking and financial services company headquartered in London, and is the world's second largest bank. It was R Paul Davis, a digital currency proponent on the Isle of Man who summed up the obvious, “HSBC closed CTS’ corporate accounts because it objected to bitcoin transactions flowing through it.” Capital Treasury Services (CTS), the company that links bitcoin businesses to banks is still keen to work in the digital currency industry, but it is not able to do so without the support of its banking partners.

HSBC has recently been put through some serious trauma when called upon its mistake regarding money laundering. In 2012, HSBC was the subject of hearings of the U.S. Senate permanent subcommittee for investigations for severe deficiencies in its anti money laundering practices. In December of 2012, HSBC agreed to pay a record $1.92 billion fine in this money laundering case. Needless to say the bank is playing it safe when it comes to bitcoin.

It was announced at the Summit that a merchant services firm Instabill based in the USA would take control of CTS’ accounts and replace most of the services offered. Complementing the online gambling industry on the island a bitcoin banking industry would be an interesting project worth pursuing with the online gambling industry, comprising around10% of its gross domestic product.  Operators such as Pokerstars are based on the Isle of Man.


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