The announcement of shut down of Bottle Pay, which enables seamless Bitcoin transactions across social media and chat apps using proprietary social linking technology, just has been made as the AMLD5 European Union regulation is coming into effect. The Bottle Pay app allows near instant payments to anyone on a supported platform, and drives our mission to make Bitcoin accessible for everyone from Twitter to Telegram. Reportedly the London-based company raised $2 million in September and the startup already served 10,000 user accounts. After releasing a public beta with real bitcoin in November, it found that latest European regulations will keep a negative impact on their activity. The new regulation will force the startup to collect personal information from their users that will have an antithetic impact on user experience. But the startup doesn’t want to do so.
Effect on other Exchanges
Another exchange Bitpanda, which is a secure and highly rated cryptocurrency exchange that lets users buy or sell a range of cryptocurrencies using fiat currency, is also walking along the way which is Bottle Pay following. Bitpanda will roll out a new user registration process that applies to custodial crypto wallets according to a comment by Jon Matonis, chief economist at Canada’s Cypherpunk Holdings Inc. According to belief this policy also applies to noncustodial wallets as like as Samorai Wallet, which is not publicly registered in any specific jurisdiction. Another comment appeared that this policy can compel all crypto wallet providers in the European Union to collect know-your-customer information from users.
From the concept it can be assumed that similar to banks and brokerage service providers, cryptocurrency exchanges and custodial wallets will be obliged entities. Concept of anonymous transaction is out of AMLD5 rules. Due to AMLD5 exchanges and custodians are obliged to obtain KYC and other personal information from their clients. Transactions of their users will be monitored too and records of transactions will be maintained. An individual of European Securities and Exchange Commission thinks it is important to have risk warning for consumers going into those products including anti-money-laundering procedures. Meanwhile Bottle Pay tweeted that users should withdraw their funds within the next two weeks.