Bitpay

OneHost Cloud have just received an email from Bitpay ( our Bitcoin Merchant Provider ) who states that we can no longer receive Bitcoin payments from the following sanctioned countries due to Bitpay US Currency Sanctions :-

  • North Korea
  • Iran
  • Sudan
  • Syria
  • Cuba

As we are a Global Cloud Hosting provider we cannot prevent or restrict orders from particular countries and with the advent of proxies and VPNs being the norm in todays ever changing Internet there are many times when the IP never matches the physical location of the customer.

OneHost Cloud was founded by Ben McGuire who has based this entire business on privacy and a free and open Internet. This includes payments via cypto-currencies and to accept these payments without judgment or restriction.

With Bitpay now bending to the willing of the United States Government to implement these sansctions we believe that this goes against the very nature that Bitcoin was founded upon. Decentralization and no regulations. Having Bitpay now enforcing such sanctions makes them nothing more than a normal bank with is not what Bitcoin was created for.

Quote from Bitpay via Emil

“As BitPay is a regulated business in the US, we have to comply with OFAC sanctions which means we are under no circumstance allowed to accept payments from countries that are on the sanction list. This is also described in section 3.4 of the Terms of Use that you agreed with (https://bitpay.com/about/terms). “

This is a slippery slope crypto-currency providers are no going down as with all the regulation now being adopted it is only a matter of time before every aspect of cyrpto-currencies will be regulated and overseen by Government.

OneHost Cloud has multiple payment providers and we have no removed Bitpay from our billing systems and have now enabled Bitcoin via Coin Payments which we have been using for many of our Alt-Coin payments.

Additionally From Bitpay

Enhance your internal controls to ensure that in the future, BitPay will not receive any bitcoin payments from customers that are located in Iran, North Korea, Sudan, Cuba or Syria.

Violations of OFAC sanctions are a serious threat to BitPay as a business. To give you an idea, a recent penalty for OFAC violations was over 100M USD (https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20170307_zte.pdf).

Considering that this is the second time we have removed Bitpay in a matter of years – the last time Christmas 2017 due to their minimum payment limits we now have been forced to us other means of accepting Bitcoin payments. We truly believe that this will impact Bitpay and their ability to receive payments as it is extremely difficult to restrict payments based on the customers location and for one we are certainly not and never will be a Cloud Hosting provider that implements these restrictions.

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