Simplecoin, a European cryptocurrency mining platform, has announced that it will be shutting down its operations on January 1, 2020. Simpleton reported that the proposed fourth Anti-Money Laundering Directive by the European Union (EU) is currently being implemented by its member states which impacts its platform because it operates from the Netherlands and as soon as the government passes the legislation that implements the directive, it will become subject to a large range of AML/KYC requirements.
“It is because under the new Directive, we would be considered a “custodial wallet provider”, a broad definition that will apply to many cryptocurrency operations. 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. It remains to be seen what impact this will have on mining pools and the cryptocurrency space as a whole.”
According to ACAMS, the European Union Fourth Anti-Money Laundering Directive is the most sweeping AML legislation in Europe in several years. In June 2015, the EU Fourth Directive was enacted, which replaces the previous Third Directive. Key Highlights include:
- Emphasis on ultimate beneficial ownership and enhanced customer due diligence (CDD)
- Expanded definition of a politically exposed person (PEP)
- Cash payment threshold lowered to €10,000
- Expanded to included entire gambling sector beyond just casinos
- Enhanced risk-based approach, requiring evidence-based measures
Simplecoin also listed what the shutdown means to users:
- All users have until December 20, 2019 to withdraw any remaining balance. On that date, the wallets and the mining service will be taken offline.
- A basic version of the website will remain accessible until the last day of the year. Users have until then to delete their account information by following the instructions on our Data Policy page if they so desire.
- On January 1, 2020, all operations will cease and Simplecoin will be closed and archived.
Simpleton went on to add:
“We thank every single one of you for being with us. It was a great experience and as a social mining platform, people found support and friends. Together, we made cryptocurrency and mining more accessible to many people. We hope to return one day and will reach out to you once there are new developments. It is not over yet. Thank you, and farewell for now.”