eBay Loophole Allows Sale of Bitcoin
Buyer service personnel from California-based on-line marketplace eBay have confirmed that virtual currencies like bitcoin and litecoin can be sold on the platform, offered they are housed in physical items (like USB sticks or tough drives).
eBay, the owner of on the web payment firm PayPal, now boasts more than 124 million active members, a figure that has elevated 14% from 2012, according to the company’s latest earnings report. In context, Shullman Analysis Center has recommended 32% of US adults shop on eBay every single year.
The organization’s UK Media Centre declined a request for comment, so it’s not recognized at this time if this stance represents official organization policy, or if its customer service agents have designed their personal interpretation of previous rules due to demand.
eBay president John Donahoe has recommended in earlier interviews that the business may a single day accept bitcoin.
This eBay functionality was very first purchased to light by Roger Hughes, a net developer and photographer who initially posted the findings on his blog, Clicked Photography.
In the post, accessible in full on his blog, the litecoin miner probed eBay about employing physical goods as a means to acquire seller protection for virtual products.
&ldquoIf you provide the [bitcoin] in physical condition and preserve proof of postage, you will be covered below Seller Protection.&rdquo
According to PayPal’s seller info page, this implies eBay users that sell virtual currency with each other with physical goods would be assured the full quantity of sale, should the buyer fraudulently claim an item did not arrive as promised.
To acquire complete protection, the representative indicated eBay virtual currency sellers need to: track payment for such products in PayPal, confirm the delivery address of the buyer prior to posting the item, offer a tracking number to the buyer and hold proof of postage for the delivery.
Subsequent customer service interactions between CoinDesk and eBay revealed that, constant with eBay’s present policy for ‘virtual products’, it does not enable sellers to post virtual currency that isn’t paired with a physical item at this time.
eBay prohibits game currency, game products or game accounts to be traded on its platform, obtaining banned the practice in 2007.
Notably, however, eBay did make an exception for virtual items available via Second Life, an online virtual planet where users are in a position to create products and retain the copyright for said products.
The eBay representative went on to give Hughes with ideas on how he must post the item, suggesting the title “USB Stick with Cost-free Litecoin Wallet,” as it would be optimized for search.
eBay Sign Image via Shutterstock