Mt. Gox’s Website Disappearance Weakens Bitcoin’s Legitimacy Fight

Mt. Gox's Website Disappearance Weakens Bitcoin’s Legitimacy FightBitcoins are struggling really hard to make their present felt and keep themselves alive. Bitcoins are facing legal, cyber security, technical and many more challenges. Bitcoin exchanges around the world are facing technical and legal difficulties. Many of them have already shut down their website and many more are in the process of doing the same.

Now it has been reported that Mt. Gox, one of the world’s largest Bitcoin exchanges seems to have disappeared. Mt. Gox’s website was returning a blank page. The disappearance of the site follows the resignation Sunday of Mt. Gox CEO Mark Karpeles from the board of the Bitcoin Foundation. However, the website is carrying a message from Mark Karpeles that says that he is still in Japan and working very hard with the support of different parties to find a solution to the recent issues of Mt. Gox. Earlier a decision was taken to close all transactions on Mt. Gox for the time being in order to protect the site and its users

This episode has shaken the trust regarding the virtual currency that is already facing legal and security challenges world wide. However, supporters of Bitcoin, including San Francisco-based wallet service Coinbase and Chinese exchange BTC China, said that Mt. Gox’s collapse was an isolated case of mismanagement. They said it had abused users’ trust, but did not offer details. “As with any new industry, there are certain bad actors that need to be weeded out, and that is what we are seeing today,” the statement said.

Rumours are also there that Mt. Gox faced a sophisticated cyber attacks that resulted in stealing of large number of Bitcoins. This was the reason why the exchange blocked withdrawal of Bitcoins a few days back. The Japanese government has not announced any formal investigation in this regard till now.

In India, the Enforcement Directorate (ED) searched and raided few Bitcoin exchanges to see whether the yare violating Indian laws or not.  ED believes that Bitcoins can be used for criminal activities including money laundering, hawala transactions and funding of terrorist activities. Indian Laxmicoin has even sought clarifications from regulatory authorities of India before its launch.

Bitcoin exchanges in India need to ensure techno legal compliances before they launch their ventures in India. Otherwise they may find themselves on the wrong side of the law and facing legal battles.

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