Cryptocurrency Companies Closing Down Due to EU Money-Laundering Regulations

News / 17.12.2019

Simplecoin and Chopcoin are shutting down due to AMLD5 European Union regulations which will take effect on January 10, 2020. Simplecoin is a cryptocurrency mining pool whiles Chopcoin is a bitcoin gaming platform.

According to a notice on Simplecoin’s website, it will be shutting down on January 1, 2020. This is because AMLD5 will demand its users to perform KYC for anti-money laundering (AML) reasons which will jeopardize users’ privacy.

According to Co-founder of Simplecoin, Christian Greiger, Simplecoin was launched in Aug, 2018. It was also co-founded by Marvin Janssen, and has 42,000 customers and two employees. Greiger added that, users could save digital points and withdraw them for any supported currencies, including proof-of-stake tokens which cannot be mined currently.

Platform users are to withdraw their funds by December 20 and also delete their account details by December 31. The wallets as well as the whole platform will be closed down after the latter.

Chopcoin, also co-founded by Greiger, is closing down for the same reason. AMLD5 imposes strict reporting rules and authorizes Financial Intelligence Units to have access to addresses and identities of crypto users and owners.

Greiger stated that, Chopcoin was co-founded by Joshua Stoffels in Sept 2015 with 305,000 customers and two employees.

Other companies like Bottle Pay, a cryptocurrency payment startup, have also been affected by the new regulations. Bottle Pay mentioned it will be closing down on December 31, just three months after its fundraising. The company added that, these rules would affect user experience negatively; hence they wouldn’t want that to happen.

Featured Image Courtesy of Shutterstock. Source: CryptoPress.

Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.