A new EU directive, the 843/2018 (AMLD5), which will enter into force on January 10th, 2020, will greatly limit the scope of the crypto sector due to the introduction of strict AML (Anti-Money Laundering) and KYC (Know Your Customer) measures.
In the blockchain space and that of crypto in particular, one of the problems that are often encountered, is regulation. Either too vague or too restrictive, which prevents cryptocurrencies from being adopted on a large scale.
The aim of the AMLD5 directive is to block the use of these assets for the financing of terrorist activities and money laundering. And, unfortunately, even though the directive is not yet in force, this regulation already has its first victims.
One of these is Bottle Pay, which recently announced that at the end of the year it will close all its operations, despite having raised as much as $2 million.
The mining pool Simplecoin has also announced that it will end its service because of this directive. The same goes for the gaming platform Chopcoin, which will share the same fate with its closure at the end of the month after 4 years of activity.
These are just some of the platforms and services that have decided to close precisely to avoid problems with the new regulation, partly because it is important to remember that complying with the directive also entails considerable costs for companies since the collection and verification of data is expensive.
Is the new directive applied to the crypto sector as aggressive as the notorious treaty used to justify witch-hunting in the Middle Ages, the Malleus Maleficarum?