New Dutch crypto laws have bought an avalanche for small crypto businesses in the country. Many countries have put in place clear rules that encourage crypto businesses. On the contrary, there are many nations where strict regulations scare away crypto-related operations. Among those who welcome crypto businesses with open arms is the Netherlands.
Now, as the country faces tough climate change challenges, it has brought amendments to Dutch crypto laws. The new crypto regulations kicked in on 10 January 2020 – just a month before the COVID-19 pandemic struck the world. However, the government gave a six months grace period wherein crypto businesses can complete their appropriate compliance with the regulators.
New Dutch crypto laws aim to bring transparency
Cryptocurrency related businesses now have up to 18 May to comply with the new set of regulations. The mandatory registration will help clarify the existing crypto ecosystem in the country. Unfortunately, the massive registration cost amounting to $36,500 has meant that small and micro crypto businesses shut shops.
Moreover, the compliance costs are set to touch approximately $25,000 per year in the coming years. This would mean that a lot many small businesses will be closing their operations or moving elsewhere. Subsequently, less businesses would comply with regulations, which in turn would increase the costs further.
XRP TipBot tides over uncertain high-cost regulations
XRP TipBot is one of the many brands that will be directly affected by new Dutch crypto laws. The XRP-based tipping service has already moved from being a free service to a paid model in order to keep the engine humming. Wietse Wind of XRP TipBot says that the rising compliance costs have forced the firm to look for pricing models.
However, XRP TipBot creator does not support charging exorbitant fees for the app’s services. No wonder that XRP TipBot has collaborated with another virtual money service called Uphold. The two have joined hands to help users tip better using crypto. Uphold accounts will be integrated to access XRP TipBot services. Unfortunately, not all crypto businesses can ride out the storm through such collaborations. For example, Bittr, a BTC-based savings firm, had to close its operations due to new Dutch crypto laws.