XRP TipBot Rescued From Dutch Regulations Through Partnership With Uphold
XRP TipBot has avoided closure due to the Netherlands' strict implementation of AMLD5 via a partnership with Uphold.
XRP TipBot, a service enabling users to transfer XRP to each other via comments on Twitter, Reddit and Discord, has been saved from the threat of extinction at the hands of new regulations in the Netherlands.
In a May 14 blog post, developer Wietse Wind explained that the “personal hobby project” had been at risk due to a registration deadline and vastly increased costs in order to conform to recently passed Anti-Money Laundering (AML) legislation.
However, the project has been saved, through a last-minute partnership with digital payment platform Uphold.
Regulators and costs looming
As Cointelegraph previously reported, the Dutch implementation of the European Union’s Fifth Anti-Money Laundering Directive (AMLD5) has already received a lot of criticism.
An overzealous approach to cryptocurrency oversight with the costs of this supervision passed on to the industry itself, has already seen company closures, along with a wave of platforms moving out of the Netherlands.
Faced with a registration deadline that he couldn’t meet, and costs estimated at €25,000 ($27,000) per year and rising, Wind had almost given up hope for XRP TipBot’s survival.
Partnership with Uphold
With a deadline for action looming, Wind contacted Uphold to discuss the potential for a partnership. As Uphold is registered in the United States, the issues with Dutch regulators would cease to be a problem overnight.
Within a week, XRP TipBot has now been integrated with Uphold and has gone live.
This means that users now need to have and link an Uphold account in order to send and receive tips.
However, it also provides the added benefits of fiat on- and off-ramps, a linked cryptocurrency exchange, and the ability to link multiple social media accounts to one XRP TipBot balance.
For fans of the service, this trade-off may represent a small price to pay for its continued survival.