Recently, Bottle Pay (a Bitcoin payment startup) announced its closure, product of the European Union’s AMLD5 regulation that will take effect on January 10, 2020.
It was communicated through the official Twitter account of Bottle Pay, where it was stated that:
“To maintain our integrity as service providers and to protect the interests of our users, we have made the painful decision to close Bottle Pay instead of being subject to the new # 5AMLD regulations.
Withdraw funds within the next 2 weeks ”
In this way, the startup has refused to comply with the requirements of the new regulation, in which the platform is required to collect personal information from its users. According to the firm, had it ceded to the new regulations, the current user experience would have changed dramatically.
So in the statement published on Friday the 13th, it said:
“The amount and type of additional personal information that we should collect from our users would alter the current user experience so radically and so negatively that we are not willing to subject our community to those conditions.”
The news is unfortunate since, just two months ago, the company managed to raise $2 million in funds that were going to be destined to increase the user base tenfold over the next year.
Regulation can be suffocating
The problem is that, given the new regulations, it is most likely that this firm is not the only one to be forced to leave the ship.
The new regulation aims to eradicate financial crimes without making changes to the operation of the system and the financial payments market. In this way, it has given the deadline January 2020 to adapt to the new requirements.
Most likely, other crypto companies join the group that decides to stop their operations due to strict regulations.