Bitcoin platform suspected of transforming into a traditional financial platform is criticized

Image source: Dazhi

Circle, a Boston-based bitcoin startup, has been in dispute with its users over payment verification and banning the use of bank accounts. According to Circle users, Circle has begun freezing payments for several days and banning the use of bank accounts.

Circle states on its website: “We believe sending and receiving money should be instant and free.” Ironically, the company has made it difficult to make payments and created a centralized payment method that goes against the principles of Bitcoin, negating the benefits of Bitcoin (decentralization).

Circle has already banned the use of bank accounts and frozen payments that require additional verification, according to a series of policies that outline the need for payment verification and prohibit the use of Circle accounts for "illegal" purchases.

In one case, a businessman was embarrassed to find out that one of his customers was using Circle wallet to buy products from his e-shop Hairlosstalk. The website recommended users to use Circle to buy Bitcoin because the website allows its users to connect their bank accounts and buy Bitcoin with US dollars.

A user emailed Stacia (owner of Hairlosstalk) saying that the bank had banned Bitcoin purchases, thus limiting the user’s access to Circle. However, Stacia discovered that Circle banned the user from using bank accounts and credit cards, and restricted the user from buying Bitcoin.

Stacia said: "Obviously, this user thought that the bank and his credit card had banned the use of Bitcoin, but in any case, it was Circle that banned the use of his bank account and credit card. I think the point of Circle is that you can complete the function of instant wallet through credit card? Now I feel embarrassed to say these facts."

Circle has recently raised over $50 million in funding with the support of Goldman Sachs (Goldman Sachs, a leading international investment bank) and IDG (a Chinese partner of a foreign investment company). The Bitcoin wallet and Bitcoin exchange allow users to store USD and Bitcoin and send them to anyone in the world for free. However, recent events, user experience, and new policies indicate that Circle is transforming into a more traditional financial platform, which makes Circle look more like a bank than a Bitcoin exchange.

In a matter of months, Circle’s platform for Bitcoin will move from “instant” transaction times to days, and most likely weeks and months.

Users began to complain about Circle's verification system and began to leave Circle's Bitcoin platform and turn to other platforms.

A user named Michael wrote in the title in February:

"I created an account and tried to add my bank account and credit card and deposit money into the system. I gave away a lot of personal information and I had to take a photo of my driver's license. This wasn't a big deal to me because this type of service is an attractive scam. But Circle said they needed time to review the information, and that's the problem. They closed my account while they reviewed the information."

Since Circle raised funds in 2014, more than 10 public complaints have been uploaded to Reddit. Many users complained: "I linked my debit card and made a purchase, and the purchase was canceled. I waited two days to link my bank account, made a $10 transaction, and still no Bitcoin. Shouldn't this be instant? Then I waited a few more days to get the $10 promotional credit. I contacted Circle and was told that they had canceled the promotional credit.