The EU has recently come up with a new anti-money laundering regulatory framework. Many crypto businesses are leaving the market.
Simplecoin, a crypto mining pool and Chopcoin, a BTC gaming platform, will be closing shop due to the EU’s proposed AML regulations.
Simplecoin published a notice on its website stating that it will be soon shutting down. It added that the EU’s latest AML and KYC regulations were the reason for its decisions. The exchange pointed out that these requirements are against the fundamental principles of cryptocurrencies such as privacy and decentralization.
Speaking on the announcement, Co-founder of Simplecoin, Christian Grieger emphasized, “the firm has over forty-two thousand users and two staff. Mining must be made available to everyone and the privacy of their users will not be jeopardized.”
Simplecoin users will have to withdraw funds by December 20, 2019. The exchange also expects all account details to be deleted by December 31, 2019.
The Bitcoin gaming platform also cited the EU’s proposed AML regulation as the reason for its decision to shut down.
Grieger, who is also the co-founder of Chopcoin pointed out that Chopcoin has “over three hundred and five thousand users plus two staff”.
He also claimed that Chopcoin and Simplecoin never raised funds from any venture firms or investors.
Other crypto firms affected as well
The EU’s proposed money laundering regulation has affected more businesses than Simplecoin and Chopcoin. Just last week, crypto payment startup BottlePay announced that it will be shutting down by December 31st.
So did CryptoBridge, a decentralized crypto exchange. All in all, the new EU’s regulation has taken a heavy toll on the crypto space. Most likely more cryptocurrency businesses will have to close shop soon.
The new regulation will come into effect on January 10, 2020.
Are you from the EU? What do you make of the regulation? Let us know.
To me all these new AML rules are something crypto market needed all the time. “…requirements are against the fundamental principles of cryptocurrencies such as privacy and decentralization.” I understand the point why cryptocurrencies were made for, anonymity etc. but over time people began to use Bitcoin as a ‘crime factor’, to money laundering, there have been so many theft so on and so on. Note, if users trade as it should be, new directives and law aren’t going to affect them. People have to understand, it’s all about to prevent particular crimes, not to close all exchanges. Providing AML and KYC services for virtual currencies should be obligatory, so far only platforms like Coinfirm dealt with such problems, as a private companies. In my opinion now, when government is going to pay more attention on that field of the market, many things will change positively.