Quote from: Fireball on July 29, 2011, 08:10:27 PM

Quote from: RuthBPaxum on July 29, 2011, 06:56:54 PM

I'll quote the whole thing, since it does have relevance:

6.1. Paxum reserves the right to terminate this agreement with the User for reasons below:

(a) Receipt of potentially fraudulent funds;
(b) Opening multiple Paxum accounts;
(c) The account has been used in or to facilitate fraudulent activity;
(d) Name on the identity papers do not match the name on the Paxum account;
(e) Receipt by Paxum of excessive complaints regarding your account, business or service;
(f) Use of an anonymizing proxy:
(g) Refusal to cooperate in an investigation or provide confirmation of identity when requested;
(h) Using Paxum E-Wallet for activities listed in section 3.4 of this Agreement;

Based on the listed reasons that you are referring to (above), it is unlikely that the account-holder would be able to withdraw their funds after account termination. Each case would be individually investigated and evaluated at the time to determine a decision.

I am considering using Paxum in my upcoming currencies/futures bitcoin trading platform, and that's why that list makes me a little bit nervous. I understand the individual approach and it's great, but if we come from the law side, then starting from the very first point:
(a) Receipt of potentially fraudulent funds;

My exchange would operate very typically: Customers deposit needed amount of money to the exchange's paxum account (provided they want to use paxum, just a paxum-paxum account transfer) then buy/sell futures contracts and bitcoins, and withdraw money back to their own account (again just paxum-paxum account).

As any broker or stock exchange, I am not interested in the origin of money being deposited or withdrawn. My primary concern is providing the market to buy/sell bitcoins and futures contracts.

Now imagine if someone who you consider as fraud, decides to trade on my exchange, and transfers me his $1000 using paxum. Would you close my account then? Logical answer is yes, because it falls to the (a) clause of your terms. Oh well, and to (c) too really.

(f) is also a tough point. What is a definition of anonymizing proxy? My system would be placed across different servers, and my own payment processing services would be running on at least a few of them to provide fast automated deposit/withdrawal. Would it be considered as using a proxy?

Quote from: RuthBPaxum on July 29, 2011, 06:56:54 PM

Belize is the location of the card issuer for the Paxum Mastercards. Hence, some parts of the agreement are governed by those laws.

Thanks for information, it clears the question of course.

Fraud prevention and Anti Money Laundering are top priorities for us at Paxum. If we encounter fraudulent activity we investigate immediately.

We do not take action unless/until we have concrete evidence of fraudulent or criminal activity. The TOS is in place to protect both Paxum and our clients.

We work with our clients and we hope they will work with us. In the examples you give you would receive communication from us relating to the issue, and seeking your assistance with our investigation. Presumably you would respond to us and comply with our investigation. Results would be determined based on information provided and FACTS and then any necessary action would be taken.

It is not in our best interests to penalize legitimate clients for actions made by others.

In relation to your query about anonymizing proxies, I will discuss your setup with our techs and see if it would cause any issues. Like I said, we do try to work with our clients