2 Crypto Companies Shut Down Due to Regulatory Pressure in the EU
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Dec. 17, 2019
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Popular mining pool Simplecoin and bitcoin gaming company Chopcoin have just announced they have decided to cease operations as a result of the imminent arrival of the new European anti-money laundering directive.

Simplecoin has said through an official statement published on its website it has decided to cease operations due to the impossibility of complying with the strict requirements imposed by the AMLD5 - the The Fifth Money Laundering Directive. To fully comply with it, the firm must provide several authorizations to law enforcement agencies, making it impossible for the company to protect the privacy of its users.

Particularly, the company co-founder Christian Grieger says that "when the laws come into effect, we would be forced to require you, the users, to identify yourselves for anti money-laundering purposes. Mining should to be available to anyone and we refuse to jeopardize our users’ privacy."

Simplecoin users have until December 20 to withdraw their funds from the platform.

For its part, bitcoin-based gaming company Chopcoin, also co-founded by Grieger, has reported it has decided to shut down for the same reason. Once the regulation comes into force, all crypto-related companies will be force to provide the authorities with information about their users.

iHodl reported yesterday that British crypto payment company Bottle Pay had decided to shut down due to the arrival of the AMLD5.

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