Two more crypto companies announced their own closures due to new EU requirements
Simplecoin mining pool and Bitcoin gaming platform Chopcoin announced their own closure amid the 5th EU Anti-Money Laundering Directive, effective January 10, 2020.
According to a notice on Simplecoin’s website, the pool will be closed on January 1, as the new rules require the company to implement customer identification and anti-money laundering measures that are inconsistent with its own privacy values..
“When the law comes into force, we will be forced to require you, our users, to disclose identification information in order to combat money laundering. Mining should be publicly available. We refuse to jeopardize the privacy of our users, ”says Simplecoin.
In a conversation with The Block, Simplecoin co-founder Christian Grieger stated that his company has 42,000 users, serviced by two employees. The service was launched in August 2018. “Simplecoin allowed users to save mined hashes (digital points) and exchange them for any supported currency, including Proof-of-Stake coins that are no longer available for mining,” he said..
Simplecoin users need to withdraw assets by December 20, and by December 31 – delete information about their accounts.
The gambling platform Chopcoin, which is also co-founded by Grieger, is shutting down for the same reason. Both projects have never attracted funding from venture capital firms or investors..
At the end of last week, a similar announcement was made by the Bitcoin payment startup Bottle Pay.
“The amount and type of additional personal data we need to collect from users will have such a dramatic and negative impact on the current experience that we don’t want to expose our community to it. To maintain our integrity as a service provider and protect the interests of our team, investors and users, we made the painful decision to completely shut down Bottle Pay, ”the company said..
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