Bittr which is a Dutch Bitcoin savings platform, founded by Ruben Waterman, will be ceasing its operations on 28 April. The startup, as addressed by the founder, will stop operating a few days before Holland introduces EU AMLD5 anti-money laundering regulations. Waterman seems to be disappointed with the way his company is being forced with closure.
According to him, this new regulatory scheme named AMLD5 is forcing him to collect sensitive data about his clients whereas all his clients have proven their identity already. Apart from this, the regulatory scheme, AMLD5 is treating every Bitcoin company in the Netherlands like banks whereas his is only a start-up company. Bittr is not in a position to manage or invest in a workforce that could be deployed in KYC documentation or to hire a compliance officer.
To quote Waterman, “They’re treating every bitcoin company in the Netherlands as a bank and a startup like Bittr does not fit into this regulatory scheme in my opinion.”
AMLD5 Creates Unrest All Over Holland
The regulations added in the report regarding the introduction of AMLD5 turns out to be unsuitable for the crypto companies in Holland. Although the introduction was directed at augmenting clarity at a regional level through an AML framework, the fees incurred by the crypto companies are higher than what banks otherwise incur yearly. Many crypto companies are casting a doubtful glance at the new regulatory scheme which claims is meant for their welfare.
Ruben Waterman on failing to abide by the regulations has declared to cease operation in Holland and re-locate his company somewhere else in Europe.
It has also been reported that before the introduction of the regulation, the derivatives exchanges Deribit and Simplecoin have already had to shift operations out of the country.