A tip service that is popular with social media users will cease operations on New Year’s Eve. BottlePay connects social accounts to Bitcoin wallets so users can reward each other for content.
The move follows new EU anti-money laundering rules. BottlePay has confirmed that users can only withdraw money until the end of the year.
Regulations force Bitcoin Tipping Tool to do business
According to a BottlePay press release, the Bitcoin social tip service will be discontinued at the end of the year. The company cited incoming EU money laundering regulations as the reason for the sudden termination.
The custody account provider is based in the United Kingdom, and since the country is located in Europe, at least for now it should meet the new anti-money laundering rules that will enter into force on 10 January 2020. According to BottlePay, the measures had to require too much information from the users to continue offering a comparable service. Instead of turning it into something barely recognizable, the team decided to end it.
“The amount and type of additional personal data that we would have to collect from our users would change the current user experience so radically and negatively that we are not prepared to impose it on our community.”
According to BottlePay, all tip bots are already on Twitter, Reddit, Telegram and Discord. From now on, no new registrations or deposits will be accepted. Money that has already been transferred but not used will be returned to the sender within one week.
For those who are already using the service, withdrawals will remain online until 1:00 p.m. GMT on December 31st. BottlePay donates all funds that are still in purses after this time to the “Human Rights Foundation”.
The company assures its existing users that the bitcoins in the wallets are absolutely secure. Users are asked to remove all links to payment pages from social profiles, withdraw money and uninstall the browser extension.
This is not the first time that the evolving regulatory landscape has placed cryptocurrency companies in a difficult position. In a similar situation, the once anonymity-based Exchange platform ShapeShift unsettled many of its users by introducing “know your customer” controls and identification checks. BottlePay is obviously trying not to disappoint its users in this way. It writes:
“… we are confident that we can conclude bottle pay with our heads held high because we know that we have always acted with the well-being of our users in mind first and foremost.”