Bitcoin Lending Platform BTCJam Stops Taking New US Customers

Bitcoin lending platform BTCJam is no longer taking new US customers, citing uncertainty around regulation in the country.

Mar 11, 2016 at 7:17 p.m. UTC
Updated Sep 11, 2021 at 12:10 p.m. UTC

Bitcoin lending platform BTCJam is no longer taking new US customers, citing uncertainty around regulation in the country.

According to BTCJam founder and CEO Celso Pitta, the platform will no longer allow for the creation of new accounts from the US.

While existing users can still access their accounts, receive or make payments on loans and process withdrawals, affected account holders won’t be able to issue new loans.

Pitta said that the move was driven by regulatory issues in the US, echoing a message posted to the BTCJam website and circulated on social media earlier today that described the decision to restrict new US accounts as "difficult".

He told CoinDesk:

"Our mission has always been to provide access to credit in developing countries. We decided to focus solely on that mission until there is more clarity around bitcoin regulation in the US."

The move to start pulling back from servicing US customers is reminiscent of decisions made by some bitcoin exchanges in the wake of the passage of the BitLicense, the licensure framework put in place by New York financial regulators last year.

At the time, a number of bitcoin firms publicly denounced the BitLicense and declared their intention to stop serving New York customers.

Disclaimer: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in BTCJam.

Stop signs via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
2
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
3
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
4
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown