MtGox has their French bank account closed last year, as the bank stated they aren't legally allowed to undertake the activities they were doing in regards to trading Bitcoins. There have been a few decisions in this regard as well as a few appeals. What is the full story behind the whole issue and have any conclusions been reached?
"While Bitcoin at a European level is so far not directly impacted by this decision, the Bank de France (France's central bank) has confirmed that because of European banking rules, monetary transfers (deposits and withdrawals) through a single entity are subject to financial regulation and therefore can only be performed by licensed financial institutions such as banks or Payment Service companies (the European Equivalent to a Money Service Business). This decision has forced us to find other payment processing partners within Europe that will allow us to quickly resume all EUR transactions for our European customers soon."
To be allowed to accept deposits, keep your funds, and allow withdrawals, mtgox ( and any other European based exchange, like virwox for example ) have to be registered as a Payment Service Company (the European Equivalent to a Money Service Business). Since virwox is in Europe, they are probably illegal if they dont have this Payment Service Company license
This is true for any website or company wanting to accept deposits, keep your funds, and allow withdrawals, bitcoin related or not This decision is not related with bitcoin, it applies to anyone.
Registering as a Payment Service company takes time and is very expensive.
more details for : Money Services Business : http://en.wikipedia.org/wiki/Money_services_business Payment Service provider : http://en.wikipedia.org/wiki/Payment_service_provider