Circle Acts Like PayPal, Bans Bank Accounts and Freezes Payments

Users of Circle Inc., the Boston-based bitcoin startup, have been disputing with the company regarding payment verifications and banning of bank accounts. According to its users, Circle has started to hold payments for several days and ban accounts, in the tradition of Paypal.

Circle states on its website that it “believes that sending and receiving money should be […] instant and free.” Ironically, the startup has made it incredibly difficult to send payments and is creating a centralized payment infrastructure on top of the bitcoin, which negates the decentralized benefit of the cryptocurrency.

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In accordance with Circle’s long list of policies that specifies the need for payment verifications and the banning of Circle accounts that engage in “illegal” purchases, the company has begun banning bank accounts and freezing payments for days for additional verification.

One merchant found out the hard way when one of her customers used a Circle wallet to purchase products on the merchant’s e-commerce store, Hairlosstalk. The website suggested its users to purchase bitcoin using Circle, because it allows users to connect their bank accounts and buy bitcoins with USD.

One user emailed Stacia, the

Read more ... source: TheBitcoinNews