Is WebMoney the Next Liberty Reserve?
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Since the seizure of Liberty Reserve’s operations last month, it has put all alternative payment providers in focus. Specifically under review are firms utilizing e-currency solutions. In these programs, customers create accounts with the payment company. After depositing to an account, funds are converted to an exchangeable virtual currency that is freely transferred between account holders. The value of e-currency units is pegged to the denomination of the account. For an example, if a customer deposits $100 to their USD denominated account, their balance will be 100 units of e-currency which also equals $100. Different providers are offering customers accounts denominated in various global currencies, as well as also in Gold. In the case of Liberty Reserve, account holders were issued Liberty Reserve dollars that had an exchangeable value of one $1.
In the ensuing fallout from Liberty Reserve, multi-currency payment provider Technocash announced that it is closing. According to that company, the closure is due to restrictions enacted on its bank accounts following revelations that it had provided services to Liberty Reserve. Also, Perfect Money, a Liberty Reserve clone that similarly is headquartered in Latin America and provides payment services to shady services such as Ponzi schemes (read more about that here in ‘Crowd Sourced Ponzi schemes‘) has made recent changes in its corporate structure. This includes the termination of US accounts and changing its .COM TLD to .IS, both actions are viewed as methods to further them from US jurisdictions.
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