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Cryptocurrency projects and businesses worldwide are awaiting cryptocurrency regulations from the government. Some nations are yet to consider the prospect of cryptocurrency going mainstream while some such as the Netherlands have been embracing the nascent technology and are taking measures to ensure its prosperity. Nevertheless, the changes coming to space due to the regulations are affecting some participants.
A few months ago, the apex bank of the Netherlands announced the regulation of firms providing cryptocurrency services starting from January 10 this year. The apex bank gave a grace period of 6 months till May 18 this year for the firms to register with the nation’s regulators.
The registration costs a maximum of $36,500 which several small cryptocurrency businesses could not afford. Based on estimates, the subsequent costs will be approximately $25,000 every year by 2021 and as businesses continue to close down, the remaining firms will have to pay the regulatory costs thereby incurring more business costs.
One of the several projects established in the Netherlands is the popular tipping service by XRP known as TipBot, and it has been affected by the regulation just like other projects. Hence, Wietse Wind, who created the service, is no longer providing a free service but has moved to a break-even model to sustain the project. Wind is still against the huge fees and this led to the collaboration between TipBot and Uphold.
Recently, Wind noted that TipBot will continue to run with Uphold. This involves service users linking their Uphold account to hold and receive cryptocurrency. Users can withdraw balances, but need to utilize XRP TipBot through Uphold accounts.
Some firms could not get the help to sustain their services like TipBot and such is Wind’s other personal project, XRParrot, which has been stopped because of the regulations mentioned earlier. Similarly, Bittr announced in a blog post that it was shutting down last month because the firm lacked adequate funds to meet the new regulations.