Payment processor SolidTrust Pay has announced it is terminating business operations on April 1st, 2020.
The crackdown on scam friendly payment processors
began in 2013 with Liberty Reserve
.
Payza was the next major processor to
fall
in 2018.
SolidTrust Pay doesn’t reveal whether it’s under regulatory investigation, but does cite “regulatory conditions” as a reason for closing.
To our regret, changes in economic and regulatory conditions in recent years have had a significant and negative impact on our operations.
These changes have made it difficult to secure the financing required to expand our services outside Canada.
SolidTrust Pay also cites tech firms entering the payment processing sector. The likes of Google, Apple and Samsung don’t provide services to scams however, so that’s a bit of a red herring.
It’s no secret cryptocurrency has exploded as the vehicle of choice for fraudulent schemes over the past few years.
SolidTrust Pay appears to have begun offering cryptocurrency services in late 2016.
Boasting “over one million members” and regularly appearing on scam payment method lists, the processor is no doubt an attractive target for regulators.
SolidTrust Pay is purportedly based out of Canada, but I was unable to find any information on who actually owns it.
In any event, even with SolidTrust Pay voluntarily shutting down it’ll be interesting to see if regulatory action follows.
Liberty Reserve’s founder was
sentenced to twenty years in prison
in 2016. Payza’s co-founders were
indicted on money laundering charges
in 2018.
As it stands Perfect Money is probably the last major “traditional” processor still servicing the MLM underbelly. They also offering cryptocurrency services.
Use of Perfect Money system by US citizens and permanent residents is strictly prohibited.
System reserves the right to block the registrations originating from the USA or from US citizens located abroad due to local laws and regulations.
Any individual or company suspected of submitting false/misleading information with purpose of hiding US location or affiliation may be subject to account block with no prior warning.
I wonder how long before they’re shut down too? Or perhaps, like SolidTrust Pay, Perfect Money will instead opt for getting a head start on authorities.
🤖 Quick Answer
Why is SolidTrust Pay shutting down?SolidTrust Pay announced business termination on April 1st, 2020, citing regulatory conditions and economic changes that negatively impacted operations. The company struggled to secure financing for international expansion and faced increased competition from technology firms entering the payment processing sector.
What is the history of payment processor crackdowns?
Regulatory crackdowns on payment processors began in 2013 with Liberty Reserve's closure, followed by Payza's shutdown in 2018. SolidTrust Pay's closure in 2020 continues this trend of stricter regulatory oversight targeting processors facilitating fraudulent activities.
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