BitPay Shuts Down Services For Users In Germany

BitPay shut down all services for users in Germany so they are now unable to use the payment processor due to the new BaFin regulations that are expected to go live on January 2020 as we can read today in the latest cryptocurrency news.

On Thursday, the payments processor BitPay updated a post where they explain in detail which countries the company operates in. according to the blog post, we can read that:

‘’Currently, BitPay cannot service merchants or users that are based in the following countries: Algeria, Bangladesh, Bolivia, Cambodia, Ecuador, Egypt, Germany, Indonesia, Iraq, Kyrgyzstan, Morocco, Nepal, and Vietnam.’’

The BitPay representative Jan Jahosky stated that the pending regulations will become active in 2020 and that this is the primary reason why the company decided to stop offering services for German users. He also stated that the company will add support in the future. Germany stated in the public that they want crypto companies to apply for a license starting from 2020 so the company noted:

‘’We have paused operations in Germany while we evaluate the need for German licenses.’’

The new regulations are expected to have a negative impact on crypto-supportive businesses. Computer base, which is a popular information technology outlet, announced that they will no longer offer bitcoin as a payment option which comes as a result after BitPay shut down all payment services in Germany.

Since 2018, Germany increased the regulations on crypto-businesses that are operating in the country and in 2020 there will be a new set of Anti-Money Laundering regulations that will go into effect. Once they are implemented, the cryptocurrency businesses such as wallet providers, payment providers and exchanges will have to acquire a Federal Financial Supervisory Authority license.

The new regulations are expected to negatively impact crypto-supportive businesses. Computer Base, a popular information technology new outlet, announced that it will no longer offer Bitcoin as a payment option.
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The announcement comes as a direct result of BitPay suspending payment services in Germany. From 2020, the German government will reconsider whether digital assets are financial instruments. BaFin will also have the authority to monitor all crypto custodians. With the new regulations, the wallet providers will be required to identify customers and to always report suspicious transactions to authorities.

As noted in the altcoin news, the members of the business and crypto community have mixed emotions about the new rules. The Bundestag Free Democratic Party member Frank Schaffler stated that the financial regulators are destroying the innovation and put too much pressure on crypto businesses so they are moving to other countries to find better regulatory climate.