The Simplecoin mining pool and the gaming platform Bitcoin Chopcoin are being closed due to the Fifth EU Anti-Money Laundering Directive (5AMLD EU), which will come into force on January 10.
— The Block (@TheBlock__) 16 декабря 2019 г.
Simplecoin notified users of the shutdown as of January 1, 2020, as the new rules require the implementation of a wide range of requirements for AML and KYC procedures.
“When the laws come into effect, we would be forced to require you, the users, to identify yourselves for anti-money-laundering purposes. We have been searching for solutions for a while, but it has become apparent that there is no way around it. We believe in the power of cryptocurrency and its potential. Mining should to be available to anyone and we refuse to jeopardise our users’ privacy, ”the report said.
According to Christian Grieger, co-founder of Simplecoin, the company has two employees and serves 42 thousand users. The latter must withdraw funds from the platform before December 20 and, if desired, delete their account data by the end of the year.
For the same reason, the Bitcoin Chopcoin gaming platform where Grieger is also a co-founder is closing too.
The directive imposes stricter reporting obligations for companies working with cryptocurrency and also authorizes financial intelligence units to receive the addresses and identifiers of digital asset holders.
Grieger said that the company has been operating since 2015 and it has 305 thousand users
Earlier, for the same reason, the closure was announced by Bottle Pay.
The Fifth EU Directive
The fifth EU Anti-Money Laundering Directive (5AMLD EU) was adopted on July 9, 2018. According to it, national financial investigation authorities should be able to obtain information that allows associating the addresses of the virtual currency with the identity of its owners. In addition, the directive obliges national registries to disclose beneficiaries of companies registered in EU member states and prohibits financial institutions from opening and maintaining anonymous accounts and depositories.
EU member states are required to implement the amended rules in their national laws no later than January 20, 2020.
The UK is expected to publish recommendations for cryptocurrency companies regarding the 5AMLD EU by the end of December. It is assumed that after January 10, 2020, companies working in the field of payments, storage and exchange of cryptocurrencies will have to undergo two registration procedures – for the possibility of working with cryptocurrencies in the legal field and to confirm compliance with the new anti-money laundering rules contained in the fifth directive.