Crypto payment provider CoinPip shuts down despite strong growth potential following the launch of its crypto-to-fiat system. Singapore has launched a new set of anti-money laundering (AML) rules that have led to the closure of CoinPip.
12 March, 2020 | AtoZ Markets – CoinPip allowed customers to use cryptocurrencies as a payment method for money transfers that could be sent to employees and freelancers worldwide. It claimed to have an easy-to-use payment and transfer gateway. It could provide salary and other regular payments without users having to bear forex fees or bank transfer fees.
Promising Crypto Payment Provider CoinPip Ends
CoinPip shuts down after Singapore launched a new set of AML rule. The platform had a promising activity with high growth potential thanks to its crypto-to-fiat system, which allowed users to buy and sell cryptocurrencies.
CoinPip has already suspended operations since February 11 until further notice. The company said that it would focus on revising the licensing requirements under the Singapore Payment Services Law. The company also said:
“We will not be taking new transactions by February 11, but will close pending transactions until further notice. For assistance, please email firstname.lastname@example.org.”
Before this closing announcement, CoinPip had worked on launching several projects. More recently, it has integrated fiat-crypto capacity into the system and has also expanded to more than 40 countries. It allowed users in Indonesia and Hong Kong to pay in Bitcoin via mobile devices. The wallet was introduced to all markets in Southeast Asia.
CoinPip closure comes as the Monetary Authority of Singapore (MAS) updates its regulatory framework for activities related to crypto, including digital payments. The new law, the Payment Services Act (PSA), covers all crypto activities and exchanges based in Singapore. Thereby, it brings CoinPip and its peers under AML/CTF rules.
Businesses like CoinPip must register with the government and obtain a license before starting to operate. Under the new law, the company will have to impose new rules on “traders”, obliging them to reveal their identity. They would also be required to exercise due diligence and report suspicious activity.
The country is shaping its crypto regulations. However, some crypto providers have had no choice but to cease operations, while the consequences for linked partners will likely be far-reaching.
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New AML Rules in Singapore Similar to AMLD5
Singapore’s PSA is similar to the Fifth European Anti-Money Laundering Directive (AMLD5), which came into force in early January. This legislation is remarkable because it represents the first attempt by the EU to regulate crypto activities at European level.
Several countries already considered extending AML regulations to cryptocurrency activities, such as Australia and the UK. It is already following the recent push by the EU to regulate the sector.
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