Dutch Bitcoin exchange BitKassa announced that it would be shutting down its operations in the country this month. According to the crypto exchange, the decision to shut down was taken due to a new development that has seen the Netherlands’ central bank look to implement regulatory oversight as demanded by the European Union. De Nederlandsche Bank (DNB) issued a notice that asks crypto businesses in the country to register by a May 18 deadline. According to the notice, registration is mandatory, and failure to do so will result in the closure of the business.
The exchange claims that fees related to the registration are ridiculously expensive.
BitKassa is among the first crypto businesses to feel the heat as it decides to close down its operation, with the company’s executives citing DNB’s directive. The crypto exchange also claimed that the fees attached to the registration process are ridiculously expensive. The exchange will close down its operations on May 17, 2020, which is just a day before the DNB deadline for registering. According to BitKassa, charging a total of approximately $27,000 in fees and costs on crypto firms is unreasonable.
The charges include $5,400 in registration fees and an additional $21,600 in basic costs. These charges apply to all crypto companies in the country seeking to register in 2020 regardless of the company’s size. However, the crypto exchange claimed in its announcement that the total fees crypto firms face for the licenses surpass one million dollars.
New crypto regulations are forcing crypto companies out of business in Europe.
BitKassa is not the first crypto company in Europe that has closed down its operations due to the strict regulations. Since AMLD5 has come into effect, several crypto exchanges and companies have been forced to shut down. The Netherlands has around 75 crypto exchange and custody providers. The Dutch central bank itself noted that crypto companies are not likely to meet the registration demands. However, any company that deals in crypto-fiat services or crypto custody must register itself by May 18.