Reported today on Reddit, Mt.Gox, which had previously seen over 80% of Bitcoin transactions, has seen its market share dropping increasingly. Initially reported (and edited on Wikepedia) to have dropped to only 47%, the actual number is thought to be around 60%. The decline in Mt.Goxs trading has been picked up by other leading exchanges, BitStamp and CoinBase.
Reasons for the change are likely to be a combination of security issues, and a fallout from slow USD transactions earlier this year, after the US government seized Mt.Gox accounts in May. The accounts were seized, after Mt.Gox owner Mark Karpeles was found to be in breach of banking laws. The warrant was issued based on the following statements when opening his US bank account with Wells Fargo:
“The application asks several questions; to include, “Do you deal in or exchange currency for your customer?” and “Does your business accept funds from customers and send the funds based on customers’ instructions (Money Transmitter)?” Karpeles answered these questions “no,” indicating that Mutum Sigilum LLC does not deal in or exchange money, and that it does not send funds based on customer instructions. Money transmitting businesses are required by 31 USC section 5330 to register as such with FinCEN. According to FinCEN records on May 6, 2013, neither Mt. Gox nor the subsidiary, Mutum Sigilum LLC, is registered as a Money Service Business.”
Mt.Goxs US partner, Dwolla, ceased trading after the investigation But Mt.Gox has been able to continue trading in the US as normal following.
Can Mt.Gox bounce back, or is the Bitcoin market shifting for good?
Thanks for reading,