Sunday, 05 July 2020
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Crypto Mining Firm Simplecoin Shuts Down Citing EU Rules

Two crypto-related firms, Simplecoin and bitcoin gaming platform Chopcoin – are shutting down. Both firms cite the AMLD5 European Union (EU) regulation coming into effect on January 10, 2020.

According to official announcements published by the firms, mining pool, Simplecoin, and online crypto gaming platform, ChopCoin noted that the proposed AML rule by the EU has turned out to be a curse rather than a blessing.

The new AML policy as it stands would be a hindrance to their operations. Hence, they would rather shut down operations before the January 10 deadline.

Simplecoin will not compromise users’ privacy

Simplecoin, which is currently operating in the Netherlands, stated that the new AML policy would subject the firm to several AML and KYC requirements, including prompting users to complete the KYC procedures, among others.

Per the closure notice, Simplecoin has exhausted all available alternatives that will not require it to compromise users’ privacy. Hence, the firm has chosen to shut down on January 1, 2020.

Simplecoin is asking its users to withdraw their funds by December 20 as the wallet and mining services will be discontinued. Nevertheless, users will gain access to the basic version of the platform. On there, they can delete their data from the platform before January 1, 2020.

Chopcoin urges its users to withdraw their funds

On the other hand, Chopcoin stated that since its inception, it has tried to operate within the vision of the crypto ecosystem, “unfortunately, regulatory concerns and rejecting to force KYC on our users force us to close chop,” the firm added.

As per the announcement, ChopCoin is asking its users to withdraw their funds by December 19. They have promised to delete users’ data before finally shutting operations on December 31.

So far, the EU’s new AML policy does not seem favorable to small crypto-related firms.

Just last week, cryptocurrency payments startup Bottle Pay announced that it is shutting down on December 31, 2019. The firm provided its users a service to send cryptocurrency via social media accounts. It will be shutting down after seeing huge growth in user numbers over the last few months. The firm has also raised $2 million in a seed funding round.

Bottle Pay reportedly decided to shut down as the new regulations would “alter the current user experience radically, and so negatively” that to maintain their “integrity as service providers” and to protect its users, it decided to shut down.
What do you think about Simplecoin shut down? Will more crypto firms succumb to AMLD5 regulations? Let us know in the comments section below.
source: atozmarkets.com
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