Online payment platform Dwolla extinguishes every cryptocurrency-related service

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The platform Dwolla is shutting its doors to virtual currency exchanges and other Bitcoin-related services. The online payment system warned its customers who operate cryptocurrency-related businesses via email, letting them know that the company is withdrawing its services as of 28th October (at 16:00 CT).

You can read part of the message sent to the clients here:

As you know, Dwolla does not sell, accept, mine, value, take possession of, or hold Bitcoin or any other virtual currency product, and none of Dwolla’s users transact business with Dwolla using Bitcoin or any other virtual currency product. However, recent interest involving virtual currency and its exchanges has created uncertainty and confusion around virtual currency, and Dwolla’s relationship with a small number of its exchanges. This has forced Dwolla to reassign resources, funds, and services.

As Dwolla gears up for a new stage of growth, we recognize that we can no longer sustain this merchant base (.1 percent of Dwolla merchants) and its unique needs, and that attempting to do so jeopardizes both of our communities’ starkly different, but similarly ambitious, vision for improving payments.

Effective October 28, 2013 at 4pm CT, Dwolla will be withdrawing its service offerings to virtual currency exchanges and virtual currency related services.

We intend to work with you in meeting your needs and satisfying obligations to your customers.

The email also includes a list of events that clients should be aware of, which show that the company is gradually winding down the services available to its virtual currency customers before cutting them off completely.

  • October 10 (15h00, Eastern Time): only existing Dwolla users will be able to send funds to your business.
  • October 15 (17h00, Eastern Time): your account will be limited to sending money only. You will no longer be able to receive funds from customers. You will be able to issue refunds to customers at this time.
  • October 28 (17h00, Eastern Time): your account will be suspended. No further activity will be provided.
  • October 29 (15h00, Eastern Time): you will receive a copy of your final statements in .CSV format. We will transfer any remaining funds in the Dwolla system to your linked bank account. If you have more than one bank account linked, we will use the bank account with the most recent transaction, unless you notify us otherwise.
  • October 30 (and subsequent dates): If Dwolla receives a reversal or chargeback, we will notify you by email to the address on file. The email will provide the name of the sender and the dollar amount involved. The amount of the reversal will be debited the next business day from your linked bank account. If we fail to recover funds, we may utilize collections procedures. If you wish to receive an affidavit from the financial institution, you may request one by emailing [email protected].

Maria Santos

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

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