EU AML regulation shuts Bitcoin Payment Service Bottle Pay down

The Bitcoin start-up Bottle Pay announced its shutdown on Friday, 13th. The service allowed its users to send Bitcoin to users on social media, even if the recipients did not have a Bottle Pay account. Due to strict AML regulations coming into effect in January 2020, the newly founded start-up believes that its service will be unviable and not user-friendly enough to continue operations, while adhering to the new regulations.

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Initially, the start-up had a promising start and secured two million Dollars in funding just two months prior to the shutdown. The reason for the shutdown is the strict EU AML regulation that the business is subject to as a UK-registered Bitcoin wallet provider that would affect the business starting in January, when the 5AMLD EU regulation comes into effect.

Bottle Pay’s management believes that these regulations will have an extremely negative effect on the user experience and therefore make the service itself unviable. New registrations and social media have already been turned off, and users will have about two weeks to withdraw their remaining funds. Unclaimed funds will be returned to the sender within the next seven days.

Important: Bottle Pay users will be able to withdraw their funds until 13:00 GMT on Dec. 31, 2019.

Bottle Pay is not the only service that stopped its service in 2019. The micro-payment provider Tipjar just recently announced its shutdown as well and stated in its shutdown notice from October that there has not been enough user interest in its services to continue the service. Tipjar was developed to allow Reddit users to send Ethereum to other users but never gained a lot of traction within the community.

What do you think? Are the current AML regulations of the EU effective, or are they simply stifling innovation in the FinTech sector?

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