Mt. Gox enforces account verification after Liberty Reserve shutdown

By Friday, May 31, 2013 0 , Permalink 0

The account verification has been enforced on non-Bitcoin currency deposits and withdrawals and will commence from today. The exchange however revealed that those carrying out deposits and withdrawals using Bitcoin are not required to verify their accounts.

“Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.” According to the Bitcoin exchange changes in the policy were carried out to comply with “strict anti-money laundering rules” and to prevent “other malicious activity.”

Liberty Reserve was shut down on Sunday following the arrest of its founder Arthur Budovsky Belanchuk in Spain. Belanchuk has been charged with money laundering to the tune of $6 billion. Liberty Reserve didn’t verify the accounts of its users and only required a valid email address along with a name and birthdate. This attracted cybercriminals which more or less transformed Liberty Reserve into an online hub of illegal transactions including credit card thefts, investment fraud, and drug dealing.