XRP TipBot to Implement KYC & Charge Deposit and Withdrawal Fees


  • XRP TipBot is going to be regulated in the Netherlands following the Dutch law

XRPTipBot, a hobby project of XRPL Labs developer Wietse Wind has grown to about 60k unique accounts and has 2 million XRP tipped.

Though, it was never created to “become a business,” Wind in his latest post on Coil said things are about to change as the regulatory landscape of the crypto industry changes.

In his blog post, he stated, “Dutch government did not yet pass the bill on crypto regulation, it is without a doubt this will happen within a few months.”

In Sept. this year, the Dutch Bank announced that firms that are offering services that involve the exchange of cryptos and regular money along with crypto wallet providers must register with De Nederlandsche Bank (DNB).

These service providers are also required to comply with the rules on money laundering and terrorist financing.

“I fully intend to comply with the Dutch law and soon to be implemented crypto regulation. I see this as an opportunity to learn, professionalize, and take things to the next level,” said Wind.

KYC and AML Compliant Platform

Wind points out that countries in the European Union need to comply with the new AMLD5 rules starting January 10, 2020. This means there will be “mandatory” KYC for people who want to use XRP TipBot.

Users will have to register one XRP TipBot account, link their social media accounts (Twitter, Reddit and Discord profiles) to one account, sharing one TipBot balance.

The KYC procedure will range from minimal to full exchange-like based on the amount of the digital asset flowing in and out of your account. This process for starters will “definitely” include phone and email verification and two-factor withdrawal confirmations.

Tips sent to unregistered social media handles with be parked and locked in the sender’s account that will be transferred only after the beneficiary is registered and completed the KYC procedure.

XRP Tip Bot to Charge Fees

Now that the XRP TipBot is going get registered, Wind is planning to “improve” the existing features and add more such as higher tip amounts, transaction descriptions, fiat conversion and turn it into a business.

But it will come with costs — fee involved with registration, audit, and specialists for KYC & AML tools — that means, XRP TipBot is becoming a “platform to transfer value” and will charge “a few bucks” when making deposits and withdrawals.

However, Wind is skeptical if users will be willing to come up with digital cash to support the platform as he shared his concern on Twitter, “I worry about if users willing to go through KYC & accept fees.”

Wind is also planning to change the name “XRP TipBot” to something that resonates with the “regulated XRP TipBot V2” platform and will be seeking help from the XRP community.

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