May 6, 2020 | AtoZ Markets – Dutch crypto exchange BitKassa has announced that it would be closing down its operations in the country this month. According to the exchange, the recent development comes after the country’s central bank is set to enforce regulatory conditions, as stated by the EU.
As AtoZ Markets reported, the De Nederlandsche Bank (DNB) has given an ultimatum to the crypto companies operating within the country to register with the central bank by May 18. As per the notice, registration is compulsory, and failure to do so will result in the closure of the business.
BitKassa is shutting down due to expensive registration fees
BitKassa is among the first crypto exchanges to feel the heat as it decides to close down its operation, with the company’s executives citing DNB’s directive. The crypto company also claims that crypto exchange registration fees are too expensive.
The exchange will shut down its operations on May 17, 2020, a day before the deadline given by the DNB. According to BitKassa, charging a total of approximately $27,000 in fees and costs on crypto firms is unreasonable.
The charges include $5,400 in registration fees and an additional $21,600 in basic costs. These charges apply to all crypto companies in the country seeking to register in 2020 regardless of the company’s size. However, the crypto exchange claimed in its announcement that the total fees crypto firms face for the licenses surpass one million dollars.
New crypto regulations are forcing crypto companies out of business in Europe
BitKassa is not the first crypto company in Europe that has closed down its operations due to the strict regulations. Since AMLD5 came into effect on January 10, 2020, several crypto exchanges have been forced to shut down.
Two crypto-related firms, Simplecoin and bitcoin gaming platform Chopcoin – have shut down. Both firms cited the AMLD5 European Union (EU) regulation.
Deribit, a major cryptocurrency derivatives exchange, also moved its base from the Netherlands to Panama. The crypto firm cited the adaptability of the harsh FATF recommendations.
At the moment, the Netherlands has around 75 crypto exchange and custody providers.
The Dutch central bank itself noted that crypto companies are not likely to meet the registration demands. However, any company that deals in crypto-fiat services or crypto custody must register itself by May 18.
What do you think about BitKassa decision to shut down? Are the registration fees for crypto exchanges in the Netherlands ridiculously expensive? Let us know in the comments below!