But I would like to ask that even if users do internal transfers you guys will be able to track them internally through your database right ?
Internal transfers doesn't really have to go through the blockchain. It can simply be implemented just on the database level and tracking each transfer with a consequent transaction id.
I get people claiming we didn't pay their withdrawals every day. A simple link to block explorer showing the coin is in the address is absolute proof that they are wrong. Showing them an entry in our internal database doesn't prove anything.
Then when you add this:
I agree with you but Freebitcoin has to be careful with families. Oftentimes "families" are just one single cheater in reality...
It would a huge avenue for fraud and abuse. You can put internal transfers down in the category "never going to happen".