The new European Union laws that will come in effect from January 10, 2020, so far have caused three crypto firms to shut down their businesses. The new rules would require crypto firms to implement KYC (know-your-customer) for money-laundering purposes.
Simplecoin refuses to jeopardize users’ privacy.
The notice on Simplecoin’s website says that they are shutting because of the upcoming EU laws that require them to implement AML/KYC. The notice further reads that mining should be available to anyone, and they refuse to jeopardize their users’ privacy. The users of Simplecoin have until December 20, 2019, to withdraw their balances. Christian Grieger and Marvin Janssen founded the company in August 2018.
Chopcoin is also suspending its services.
The bitcoin gambling company, also co-founded by Christian Grieger, is suspending its services for the same reason. The new EU money-laundering regulations require firms to collect information about their customers and report it to financial authorities. At the time of shutting down the bitcoin gambling company has 305,000 users.
Simplecoin and Chopcoin are not the only companies that announced to shut down. Previously, crypto payments startup Bottlepay that raised $2 million in a seed funding round in September also announced to close down.