After Visa and MasterCard Embargo, Coin Café also denies access for Backpage.com

By July 12, 2015Bitcoin Business
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After Visa and MasterCard Embargo, Coin Café also denies access for Backpage.com

Looks like the trouble for troubles for Backpage.com are not going to end soon as Coin Cafe which is meant to be an easy way to buy and hold Bitcoins says that it does not like people attempting to use Bitcoins at the free classifieds provider. It should be noted that earlier traditional credit card companies Visa and MasterCard also abandoned Backpage.com.

Nonetheless, with all of its other merchant processing accounts closed, Bitcoin has garnered some coverage; however, as Coin Cafe are not welcome to use their hosted wallet to purchase services from Backpage.com, the trouble is not going to end here. The site seems almost hostile to those who would use its services to hire ads from Backpage.com.

Additionally, it seems this is a company policy, not necessarily the company folding under law enforcement pressure. Thus, the decision by Coin Café to not to cooperate with Backpage.com is going to hit the company badly as this was the last hope it had. Coinbase and others have yet to say anything about Backpage.com though.

However, these hosted services are known to work with the government and if the government happens to currently trying to shut down Backpage.com, it seems likely that these wallets will eventually help them. Interestingly, it is being noticed that if someone wants to pay Backpage.com, he can get the Bitcoins separately and use an actual wallet.

Also, this has come to some users’ notice that even a mobile or SPV wallet like Electrum will work fine for this purpose. However, in such a scenario, the acquisition of the Bitcoins becomes the problem and LocalBitcoins.com can probably be a good way to make this happen. The users could buy Bitcoins for the long-term usage of the site.

Alternative Available for Bitcoin Users

Nonetheless, once a user has the Bitcoins, he should not leave them in the LocalBitcoins wallet though they could probably do that as well as it would be much wiser to send them to their wallet from there, which is very easy to do. Additionally, using their wallet, pay for the advertising, and keep the coins safe by password protecting or otherwise encrypting the wallet.

Those who have been observing the issue that Backpage.com is facing admit that it would seem that Coin Cafe is fully within their rights. However, it becomes a question of whose addresses are interacting with Backpage.com – Coin Cafe, or the user?

Interestingly, it would seem that if the users were renting the address from the site, then the address would belong to them. Therefore, according to the observers whatever traffic was taking place to and from the address; it would be associated with the user, not the site.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

Nonetheless, with all of its other merchant processing accounts closed, Bitcoin has garnered […]

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