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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''. 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.


RISKS

There are no specific Financial Regulation s governing DCEs, so they operate under self-regulation. However the Global Digital Currency Association (GDCA), who were founded in 2002, are a non-profit association of online currency operators, 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." {Link without Title}

It is possible for clients to purchase DGC by Credit Card , and therefore receive consumer protection from their credit card company. Various exchangers offer this service, although the exchange fees are typically higher than using a Wire Transfer {Link without Title} .


EXCHANGERS

Comparison of DCEs (as of October 2006):


REGULATORY ISSUES

In September 2004 several Australia n based e-gold currency exchangers voluntarily ceased operation as they did not hold an Australian Financial Services licence (AFSL) {Link without Title} .
Australian based DCEs that elected to close, due to the Australian Securities And Investments Commission (ASIC) licencing requirements, included:
  • goldex.net

  • sydneygoldsales.com

  • ozzigold.com


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.

In April 2007 the US government seized the e-gold accounts of OmniPay , The Bullion Exchange, AnyGoldNow, IceGold , GitGold, The Denver Gold Exchange and GoldPouch Express, and forced G&SR (owner of OmniPay) to liquidate the seized assets {Link without Title} .


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