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Perhaps an opportunity for Pornhub themselves to get into the payments business? I assume they have enough transactional volume and vendors to make it happen.



My hunch is that would incur unwanted liability from FOSTA-SESTA [1]. Producing content and paying talent out directly is fairly straightforward for adult entertainment. There be dragons if you're attempting to build a marketplace to do something similar.

"The Stop Enabling Sex Traffickers Act (SESTA) and Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA) are the U.S. Senate and House bills that as the FOSTA-SESTA package became law on April 11, 2018. They clarify the country's sex trafficking law to make it illegal to knowingly assist, facilitate, or support sex trafficking, and amend the Section 230 safe harbors of the Communications Decency Act (which make online services immune from civil liability for the actions of their users) to exclude enforcement of federal or state sex trafficking laws from its immunity. Senate sponsor Rob Portman had previously led an investigation into the online classifieds service Backpage (which had been accused of facilitating child sex trafficking), and argued that Section 230 was protecting its "unscrupulous business practices" and was not designed to provide immunity to websites that facilitate sex trafficking."

[1] https://en.wikipedia.org/wiki/Stop_Enabling_Sex_Traffickers_...


Genuine question, MindGeek[1] is a private Canadian company, why are they subject to U.S. law if they build payment network outside of US?

[1]: https://en.wikipedia.org/wiki/MindGeek


Doing business with US customers in US dollars and interacting with US banks automatically places you under the jurisdiction of US laws.

Investigators in EU countries often work with US agencies because our laws are so much stricter, and often urge people under investigation to cooperate otherwise they'll turn over the case to the Feds.

Tom Hayes, of LIBOR scandal fame, spilled his guts and signed a confession after being told he might be handed over to the Americans. Then he tried the aspergers defense, followed by the "I only confessed because they threatened me" defense, but neither swayed the jurors and he got 14 (reduced to 11) years in a UK prison.

That's not unique to the US. Countries own their currency and regulate their banks therefore using them gives a country the right to control what you do.

This is grossly oversimplified but generally speaking, if I lived in France and started a payment service that accessed the Japanese banking system and performed transactions in Yen, I would be subject to Japanese banking laws as well as French laws.


« Legally headquartered in Luxembourg »


Pornhub already runs a marketplace. You can send money to a "verified" model through the site.

The main difference between pornhub and Backpage is that pornhub is for videos but Backpage was for live meetups (Backpage facilitated the sexual acts; pornhub only monetizes them).


>My hunch is that would incur unwanted liability from FOSTA-SESTA [1]. Producing content and paying talent out directly is fairly straightforward for adult entertainment. There be dragons if you're attempting to build a marketplace to do something similar.

If they run any kind of subscription service aren't they already subject to much of the liability for this stuff anyway?


AFAIK Pornhub is Canadian. However your objection still stands; I would imagine that there are similar laws in Canada against sex trafficking.


They operate in the US, so are beholden to US law as well.


Arguably they could open the marketplace and the produced content only to non US residents.


[flagged]


> "The land of the free"

To be filed in the same drawer as "don't be evil".

As in: who still believes in stuff likes this in 2019?


There's a certain value to striving to be free from sex trafficking.


I would be surprised if the best way to free people from sex trafficking is to confiscate money from sex workers. I would also be surprised if the best way was force all sex workers to ask to be paid by a mechanism that either can’t be blocked or can’t be traced.

To adopt a cliche: if you outlaw sex work, only criminals will verb sex workers.




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