Dwolla Begins PayPal-Style Account Suspensions for Bitcoiners

I've had my account for 2 years with no problems; however, that doesn't ease me the fear that my account may be suspended and require government ID when I hit some limit.<p>I barely use Dwolla now. Coinbase (YC S12) has replaced it for me.

Overzealous patrol of fraud activities is how payment providers survive, but it also decrease utility, which allows cryptocurrency like bitcoin a niche in all sort of areas.

Bitcoin provides me more utility than Dwolla at this point.

I'm curious what people on HN believe the future holds for Bitcoins.<p>I expect the US government will step in in the not to far future and severely restrict the ability to legitimately exchange Bitcoins for dollars. I'm not passing any judgement on Bitcoins themselves, it just seems unlikely to me that people in places of power will be ok with an independent currency.

All these years we've been reading on HN how Dwolla was supposed to be different than PayPal. As a passive observer I've taken their marketing message/value proposal to be specifically that they were not the type of company who would ever execute these PayPal style seemingly thoughtless account suspensions.<p>At this point unless the facts turn out to be different than presented here, I will never be a Dwolla customer.

Describing this as "for bitcoiners" is misleading.<p>The suspicious activity that this user's account was suspended for was a payment (in USD) from one individual to another, that Dwolla suspected was an "unlicensed BTC exchange" (not necessarily on a commercial scale.)<p>Using a network like bitcoin-otc is a solution only if the USD side is paid in cash.

<a href="https://mtgox.com/press_release_20120808.html" rel="nofollow">https://mtgox.com/press_release_20120808.html</a> ????

Dwolla was shitty to Bitcoin users earlier on. That's why I still have a bad taste in my mouth when hearing about them. Fortunate for them, I still hate Paypal more.