June 19, 2024

European cryptocurrency companies close due to future tightening of regulatory rules

European cryptocurrency companies close due to future tightening of regulatory rules

Mining pool Simplecoin and cryptocurrency gaming platform Chopcoin are closed due to European regulationAMLD5 Union, effective January 10, 2020.

According to the notice posted on the siteSimplecoin, the company stops working on January 1. The decision is due to the fact that the new rules will require compliance with the requirements of AML and KYC, and this contradicts the nature of cryptocurrencies.

When the new rules come into force, we willare forced to require you, the user, to undergo personal identification for anti-money laundering purposes. Mining should be accessible to everyone, and therefore we refuse to compromise the privacy of our users, – Simplecoin said.

Christian Griger, co-founder of Simplecoin, saidThe Block publication that the company employs 42,000 users and two employees. Griger co-founded Simplecoin with Marvin Janssen in August 2018.

Simplecoin users have until December 20 to withdraw their funds and delete their accounts by December 31, as the platform will not be available after this date.

Another company, gaming platform Chopcoin,which was also co-founded by Grieger, is closing for the same reason. Grieger told The Block that he co-founded Chopcoin with Joshua Stoffels in September 2015. The platform currently has about 305,000 users and two employees.

Simplecoin and Chopcoin – Companies are not the only ones affected by the new rules. Just last week, cryptocurrency startup Bottle Pay announced it would close on December 31st.