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Simplecoin Shuts Down Amidst Regulatory Uncertainties

Legal

btcmanager.com 16 December 2019 06:00, UTC
  
Reading time: ~2 m

Simplecoin, one of the most credible Bitcoin mining pools, has announced that it would shut down operations on January 1, 2020, due to the impending implementation of the fourth European Union Anti-Money-Laundering (AML) Directive by member states, according to a press release on December 15, 2019.

Simplecoin Kicks the Bucket

Simplecoin, a bitcoin (BTC) mining pool that aims to simplify the process of bitcoin mining by providing users with the right tools they need to succeed in the space, has made it clear that it will call it a day on January 1, 2020, due to unfavorable regulatory conditions.

As stated on its website, the proposed fourth Anti-Money-Laundering Directive which is currently being implemented by some European Union member states has made it impossible for it to continue its regular operations, as the regulations mandates all crypto market participants to carry out a large range of AML and KYC procedures on their clients.

The firm says the new legislation categorizes it and several other service providers in the cryptospace, as “custodial wallet provider,” making it mandatory for the platform to collect users’ personal information for KYC purposes.

Simplecoin said:

“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.” 

The mining pool also noted that it’s not willing to comply with the new directive, as such it has decided that the best thing to do is to halt operation.

“We believe in the power of cryptos and its potential. Bitcoin mining should be available to anyone and we refuse to jeopardize our customers’ privacy.”

December 20 Withdrawal Deadline 

With the latest development, all users of Simplecoin are required to withdraw their funds by December 20, 2019, as the wallet and  the mining service will go offline on that day, while a basic version of the platform will remain online until December 31, 2019. 

Simplecoin says it’ll cease all operations on January 1, 2020, with the site closed and archived.

Founded in 2018 by Grieger and Marvin Janssen, Simplecoin made it possible for users to save their mined hashes and exchange them for any of the supported currencies on the platform.

“Together, we made cryptocurrency and mining more accessible to the masses. We hope to return in the future and will inform you once there are new developments. It is not yet over,” declared Simplecoin.


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