Crypto payment provider CoinPip has shut down despite reporting strong growth potential following the launch of its crypto-to-fiat system. The startup has already suspended operations since February 11 until further notice, indicating at this time that it will focus on reviewing license requirements under the Singapore Payment Services Act.
âWe will not be taking anymore new transactions from now till 11th February, but will be completing pending transactions until further notice. For support, please email email@example.com,â CoinPip said in a notice published on its website.
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CoinPip platform allows customers to buy, sell and use cryptocurrencies as payment for remittances, helping businesses send money to their employees, freelancers and contractors around the world. It touts its payout and transfer gateway as designed to ease regular payout and salary remittances while avoiding bank transfer fees and forex charges.
Prior to this shutdown announcement, CoinPip had been working on launching several projects. Most recently, it integrated the crypto to fiat capability in the system, and also expanded to more than 40 countries.
CoinPip also allowed customers to pay in bitcoin from any mobile device with SMS functionality in Hong Kong and Indonesia, eventually introducing the wallet throughout South East Asia.
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Singapore mimics Europe in bringing crypto under AML
CoinPipâs closure comes as the Monetary Authority of Singapore (MAS) is updating its regulatory framework for crypto-related activities, including digital payments. The law cited in its statement, Payment Services Act (PSA), covers all crypto businesses and exchanges based in Singapore, bringing CoinPip and its peers under anti-money laundering and counterterrorist-financing rules.
As such, CoinPip and other crypto businesses in Singapore are required to first register and then apply for a license to operate in the jurisdiction. The law imposes registration and customer due-to-diligence requirementsÂ that force operators to disclose their tradersâ identities and report suspicious activity.
With the country thrashing its crypto regulation into shape, some crypto providers had no choice but toÂ cease operationsÂ while the consequences upon related partners will likely be wide-reaching.
Singaporeâs PSA law is similar to Europeâs Fifth European Anti-Money Laundering Directive (AMLD5), which went into effect earlier in January. The legislation is notable because it represents the EUâs first attempt to regulate cryptocurrency activities at EU-level expressly.
Extending AML regulations to cryptocurrency activities is being considered in several countries around the world, such as Australia and the UK, and alreadyÂ tracks the EUâs recent push to regulate the sector.