Citizendia
Your Ad Here

Digital currency exchangers (DCEs, independent exchange providers or e-currency exchangers) are market makers which exchange fiat currency for electronic money, such as digital gold currency (DGC), and/or convert one type of digital currency (DC) into another, such as WebMoney into e-gold. A market maker is a firm that quotes both a buy and a sell price in a Financial instrument or Commodity, hoping to make a profit on the turn The terms fiat currency and fiat money relate to types of currency or Money whose usefulness results not from any intrinsic value or guarantee that it can be Electronic money (also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency Digital gold currency (or DGC) is a form of Electronic money based on ounces of Gold. WebMoney is an Electronic money and online payment system (transactions are conducted through WebMoney Transfer) e-gold is a Digital gold currency operated by Gold & Silver Reserve Inc Exchangers apply either a commission or bid/offer spread to transactions. The bid/offer spread (also known as bid/ask spread) for assets (such as Stock, Futures contracts options, or Currency pairs is

Some digital gold currency accounts, such as e-gold, do not provide an in-house service to purchase their private currency so it is necessary to use a third-party digital currency exchanger. e-gold is a Digital gold currency operated by Gold & Silver Reserve Inc A private currency is a Currency issued by a private institution According to e-gold's website the reason they do not provide an in-house exchange service is so there can be no debt or contingent liabilities associated with the business, making e-gold Ltd. absolutely free of any financial risk. They claim e-gold Ltd. does not possess currency of any nation or even have a bank account.

Contents

Risks

There are no specific financial regulations governing DCEs, so they operate under self-regulation. Financial regulations are a form of Regulation or supervision which subjects Financial institutions to certain requirements restrictions and guidelines aiming to However the Global Digital Currency Association (GDCA), founded in 2002, are a non-profit association of online currency operators, exchangers, merchants and users. The Global Digital Currency Association (or GDCA) is a trade association of Electronic money operators Digital currency exchangers merchants and users On their website they claim their goal is to "further the interests of the industry as a whole and help with fighting fraud and other illegal activities, arbitrate disputes and act as escrow agent when and where required. " [1]

It is possible for clients to purchase DGC by credit card, and therefore receive consumer protection from their credit card company. A credit card is part of a system of Payments named after the small Plastic card issued to users of the system Various exchangers offer this service, although the exchange fees are typically higher than using a wire transfer [2]. Wire transfer is a method of transferring money from one entity to another

Exchangers

Comparison of Digital Currency Exchangers (DCEs) as of 1 October 2006:

Digital Currency Exchanger Year
founded		 GDCA
member		 Telephone Telefax email Digital
currencies accepted		 Fiat currencies accepted Fee buying DC Fee selling DC Fee exchanging DC to DC
CurrEx 2007 NoN YesY 3 0 N/A N/A 0–5%
SaveChange. Events 331 BC - Alexander the Great defeats Darius III of Persia in the Battle of Gaugamela. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. The Global Digital Currency Association (or GDCA) is a trade association of Electronic money operators Digital currency exchangers merchants and users Digital gold currency (or DGC) is a form of Electronic money based on ounces of Gold. ru 2007 YesY YesY 5 0 3%–5% 5% 0–5%
Euro Gold Sales 2004 YesY YesY 2 3 2. 5%–4%% 1. 9% N/A
ExchEngine 2004 YesY YesY 5  ?  ?  ?  ?
GoldExchange. ExchEngine (in abbreviated form from Exchange Engine is a Digital currency exchanger founded in 2004 eu 2005 YesY YesY 3 2 1. 9–2. 9% 1. 9% N/A
GoldNow 1999 YesY YesY 4 9 5% 5% 5%
Goldtotem 2005 NoN YesY 4 3 3–5% 0. Goldtotem is a Digital currency exchanger founded in 2005 Goldtotem is one of the services managed by Western Gold Exchange Ltd 75–1. 5% 1. 5–3%
IntlExchange. com 2005 YesY YesY 9 10 2% 1% 1. 5%
London Gold Exchange 2000 YesY NoN 8  ? 3–4% 1–4% 3–4%
NetPay 2001 NoN NoN  ?  ?  ?  ?  ?
ROBOXchange 2002 YesY YesY 14 0 N/A N/A 1–5%
SpeedyExchange 2003 YesY NoN (answerphone) 7 3 8–13% 1. London Gold Exchange is a Digital currency exchanger founded in 2001 5–9% 0. 3–4. 4%
Webmoney. co. nz 2004 YesY NoN 3 1 5–7% 3% 0–5%
Wm-center. com 2005 YesY YesY 11 3 1. 5–6% 1–8% 0–10%
Goldxcash. us 2007 NoN YesY 11 3 2–8% 2–8% 2–6%

Regulatory issues

In September 2004 several Australian based e-gold currency exchangers voluntarily ceased operation as they did not hold an Australian Financial Services licence (AFSL) [3]. For a topic outline on this subject see List of basic Australia topics. Australian based DCEs that elected to close, due to the Australian Securities and Investments Commission (ASIC) licencing requirements, included:

In July 2006 Gold Age was closed down by US government authorities following the arrest of the owners, Arthur Budovsky and Vladimir Kats, on account of not having a New York state "money transmitters" licence. Gold Age was a Digital currency exchanger and one of the first independent E-gold exchangers

In April 2007, the US government ordered e-gold administration to lock/block approximately 58 e-gold accounts, owned and used by The Bullion Exchange, AnyGoldNow, IceGold, GitGold, The Denver Gold Exchange, GoldPouch Express, 1MDC (a Digital Gold Currency, based on e-gold), and others, and forced G&SR (owner of OmniPay) to liquidate the seized assets [4]. IceGold was a Digital currency exchanger which was founded by Paul Vahur and Mati Malsub in 2000 and closed down in 2008 1mdc was a Digital gold currency (DGC originally founded in 2001. In addition, a few weeks later, e-gold themselves were indicted with 4 indictments. However, e-gold are still in business, and are growing at the rate of approximately 95,000 new accounts per month [5]. Here is the DoJ release [6] and here is the rebuttal by Douglas Jackson, CEO [7].

See also

External links

A bureau de change is an organisation or facility which allows customers to exchange one Currency for another Digital gold currency (or DGC) is a form of Electronic money based on ounces of Gold. This article discusses buying gold as an investment. Gold price The usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily
© 2009 citizendia.org; parts available under the terms of GNU Free Documentation License, from http://en.wikipedia.org
 Dapyx Software network: MP3 Explorer | Ebook Manager | Zenithic