The XRP tipBot, a service that allows users to share XRP through comments on Twitter, Reddit and Discord. It was saved from impending closure by new regulations in the Netherlands.
In a blog post on May 14, developer Wietse Wind stated that the “personal hobby project” was at risk due to a registration deadline and a huge increase in regulatory compliance costs recently approved against money laundering (AML).
However, The project has been savedthrough a last minute partnership with the digital payment platform Uphold.
Regulators and upcoming costs
As Cointelegraph has already reported, the Dutch implementation of the Fifth European Union Money Laundering Directive (AMLD5) has already received much criticism.
An overly enthusiastic approach to cryptocurrency surveillance, in which the cost of this surveillance has been carried over to the industry itself, has already led to the closure of businesses. along with a wave of platforms fleeing the Netherlands.
With a registration deadline that he couldn’t meet, and the cost of € 25,000 a year and on the rise, Wind had almost given up hope of surviving the XRP TipBot.
Association with Uphold
Wind had a deadline for the upcoming action and turned to Uphold to discuss the potential of a partnership. With Uphold registered in the U.S., problems with Dutch regulators would no longer be an overnight problem.
The XRP TipBot had already been integrated and started in Uphold within a week.
This means that users Now you need to have an Uphold account and link to send and receive tips.
However, it also offers the added benefits of fiduciary entry and exit ramps, a linked cryptocurrency exchange, and the ability to link multiple social media accounts with one XRP TipBot balance.
For fans of the service, this interim solution can be a small price to pay for survival.