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Two more EU crypto firms shut down due to pending AML rules

By:
on Dec 16, 2019
Updated: Jun 1, 2022
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  • Two more crypto companies from Europe announced their shutdown due to pending crypto regulations.
  • One of the two firms is a mining platform, Simplecoin, while the other is a gaming platform, ChopCoin.
  • Both companies refuse to violate their users' right to privacy, which is something that they will be obligated to do once the new rules are enforced on January 10th, 2020.

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The European Union’s pending Anti-Money Laundering (AML) rules regarding cryptocurrencies have already led to several companies shutting down. The first one was a crypto firm called BottlePay, which announced that it will close down the shop last week. Now, two more companies announced the same — online gaming platform ChopCoin, and a mining pool called Simplecoin.

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Both companies announced that their shutdown will come in about a month. Neither of the firms attempted to hide the reason, openly stating that the new AML directive is to blame, as it will require them to adopt KYC procedures.

As many might remember, the new rules were passed earlier this year, on July 9th. All EU countries are obligated to adopt them by January 10th, 2020.

Companies refuse to violate users’ privacy

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Simplecoin’s regarding the company’s shutdown states that the firm will be forced to ask its users to verify their identities for AML purposes. The company further states that mining should be available to anyone, which is why the firm refuses to put its users’ privacy at stake.

They also noted that the full impact of the new rules on mining pools in Europe has yet to be seen. However, there is no doubt that they will have a significant influence on the crypto industry as a whole.

ChopCoin’s announcement says a pretty much the same, noting that the company launched operations back in September 2015, more than four years ago. Since then, they gave away around 30 BTC, which attracted thousands of users to the ‘decentralized revolution.’

The company managed to create an entire community of crypto supporters who were dedicated to innovation by bringing the idea of competitive Bitcoin gambling. However, due to regulations, the company would have to ask its users to reveal their identities and lose their right to anonymity, which it refuses to do.

Both companies are urging their users to withdraw their funds as soon as possible. Simplecoin requested that its users do so by December 20th, so that they can delete their private information before January 1st. ChopCoin asked a similar thing, urging users to withdraw funds before December 19th, as all user data will be deleted by December 31st. According to Christian Grieger, who co-founded both companies, Simplecoin has around 42,000 users, while ChopCoin has 305,000.

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