Another Crypto Venture Shut Down Amidst New EU Rules
The new major regulatory push by the EU continues to compel ventures in cryptocurrency space to shut down. In an attempt to regulate the crypto market and control how firms operate on the internet, the EU is introducing some new rules and regulations.
This time, it’s Parity Technologies shutting down their ICO passport service. Parity Technologies’ team, the developers of its multi-signature wallet, have made it public that they are shutting down PICOPS. PICOPS is a service used by ICO campaigns to validate that an owner has already passed a credible ID background check, to comply with KYC/AML rules. The reason for the shutdown is a new EU order ‘GDPR’ which stands for the General Data Protection Regulation. This regulation is supposed to provide EU citizens with a new set of ‘digital rights’ and safeguard their data online.
The regulation will be introduced this upcoming Friday but has already begun killing many other crypto services, including Cointouch, a social P2P cryptocurrency exchange. Not just that, the new regulation has forced startups like Localbitcoin to change the way they run their business.
The team at Parity Technologies explained that this new regulation creates new hurdles when recording and storing personal information on the blockchain. These new challenges that the firm has to face, has made it very difficult to continue providing the service, the team added. The firm tried to look for new ways to solve these problems by making PICOPS compliant with new rules. However, by doing so, the firm would have to restrict PICOPS to a very limited set of features.
Taking into consideration the significant resources the firm would require to turn PICOPS into a GDPR-compliant service, it has decided to give up the idea and discontinue the service, despite its demand in the market.