After Move To Purchase Rival, NETELLER Moves To Accept Bitcoin, Excludes US Users

By Aubrey Swanson·25 March 2015·1 min read

Key Points

Bitcoin can now fund NETELLER accounts and purchase prepaid debit cards.
The announcement from the Isle of Man–based payments platform could go live as soon as today, with one significant caveat: U.S.

Bitcoin can now fund NETELLER accounts and purchase prepaid debit cards. The announcement from the Isle of Man–based payments platform could go live as soon as today, with one significant caveat: U.S. residents are barred from the feature. The company, which issues prepaid cards and processes online payments, is making the pivot amid larger corporate moves. Its parent company Optimal Payments recently confirmed it will acquire rival Skrill for $1.2 billion.

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The decision marks a stunning reversal. NETELLER previously blacklisted cryptocurrency transactions outright. Established in 1999, the company once dominated online gambling payments before the 2006 Unlawful Internet Gambling Enforcement Act fundamentally altered the sector. Following passage of that law, NETELLER complied by severing access for American and Canadian customers attempting to fund casinos. Skrill—then operating as Moneybrookers—capitalized on the void NETELLER left behind.

The American ban on Bitcoin deposits relates specifically to gambling risks, according to a company spokesperson. A deeper puzzle remains: how will Optimal Payments handle Skrill's historical ties to gambling now that it controls both entities? The company hasn't publicly addressed this question. Regulatory concerns around the sector appear to be driving the policy, at least for now.

We reached out to Optimal Payments requesting additional insight and will share their response once it arrives.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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