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One-person crypto company is put down by Dutch AMLD5 law enforcement agencies

April 25, 2020

The Dutch savings platform Bitcoin (BTC), Bittr has decided to shut down operations before the Netherlands introduces AMLA5from the EU.

Bittr’s closure follows criticism of the Dutch implementation of AMLD5, which supposedly led to it Cryptocurrency companies pay higher commissions as traditional credit card companies and trusts.

AMLD5 from the Netherlands forces Bittr to close

Bittr’s founder, Ruben Waterman announced on April 22 that the platform will close on April 28.

One-person crypto company is put down by Dutch AMLD5 law enforcement agenciesOne-person crypto company is put down by Dutch AMLD5 law enforcement agencies

Waterman protests that it is required to collect sensitive identification information from its customers, “including those who buy as little as possible.” [28 dólares] Bitcoin“”

“Every Bittr customer has already proven his identity to his bank”, confirms the founder of the platform and adds: “We would prefer our customers to trust a part for documents that are so sensitive that they already trust the safekeeping of their money.”

Although Waterman states that he was ready to make some of the changes required by AMLD5, You indicate that your sole proprietorship does not have the resources to manage KYC documentation internally or to hire a compliance officer.

“They treat every Bitcoin company in the Netherlands like a bank, and I don’t think a startup like Bittr fits this regulatory system,” he says.

Companies are leaving the Netherlands as part of the AMLD5 implementation

The AMLD5 apparatus should improve the clarity of legislation at regional level by introducing a single framework to combat money launderingThe different uses of legislation at national level have resulted in clear interpretations of AMLD5 being approved in different jurisdictions.

Waterman notes that the regulations were originally translated into Dutch with only minor changes. “However, after a public consultation with the industry and the DNB (the Dutch central bank), all kinds of regulations were added,” he said.

The new guidelines prescribe this 50 Netherlands-based crypto companies pay fees of around $ 1.8 million for central bank supervisionand that the costs are distributed according to the sales of each company’s virtual currency transactions.

Before its introduction, the new rules affected the crypto industry in the Netherlands and led to the preventive migration of the Deribit derivatives exchange and the closure of the SimpleCoin mining pool.

Waterman said he might consider moving Bittr to another location in Europe.

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