Ripple-based exchange XRParrot must stop operation

  • The XRParrot exchange operated by Ripple developer Wietse Wind must cease operation.
  • The reasons are the new regulatory laws in the Netherlands, which result in enormously high licensing and administration fees.

XRParrot is an innovative cryptocurrency exchange, which was launched by Ripple developer Wietse Wind in February 2019. Ripple’s venture capital company, Xpring, provided funding to the software company XRPL Labs early last year to enable the development and launch of XRParrot. The exchange was able to achieve important milestones, but new laws in the Netherlands are forcing the exchange to its knees.

New laws in the Netherlands make operations uneconomical

When you go to the official website of the exchange xrparrot.com, you will see the message that the services of XRParrot are no longer available for new orders. XRParrot was a Fiat-XRP gateway used by customers from Europe. The exchange enabled customers to buy XRP at low fees by linking a bank account to the exchange without any major detours.

The exchange was located in the Netherlands and announced a few hours ago that due to new laws in the country, the continuation of business activities is no longer possible. The reason for this is the enormously increasing costs for new license and administration fees, which will be levied immediately to ensure operations in accordance with the new legislation.

Existing users can still process orders, but this service will also be discontinued in the coming weeks. The Exchange would like to thank all regular customers for the trust they have placed in us so far and will inform all regular customers about the next steps in a timely manner (freely translated):

XRPCommunity: it’s been great! However, due to new regulations in The Netherlands (The home of XRParrot) the XRParrot service comes to an end. Accidental or automatic transfers to XRParrot will still be processed for some time (users will be informed). Thank you for everything!

In October last year, XRParrot reached an important milestone. The exchange had converted a sum of one million euros into XRP, making it one of the most popular XRP gateways in Europe. In total, the exchange had gained more than 3,000 active users from all over Europe and recorded a steady growth. The trading fees were low, so that only a few cents were added to the purchase price of XRP.

Projects such as XRParrot promote the adaptation and trust in XRP and new technologies such as blockchain. Ripple has long been calling for clear regulatory frameworks worldwide to allow the emerging cryptocurrency market to develop.

Ripple advocates regulation of cryptocurrencies

At the end of October last year, Ripple established a subsidiary in Washington D.C. to establish direct contact between companies in the cryptocurrency and blockchain industry and the regulatory authorities and decision-makers in the country. The aim is to better introduce the banking industry to the subject of these new technologies and thus create a better understanding of the challenges ahead.

Ripple has also joined the Blockchain Association, which is committed to improving the exchange of views, knowledge and experience between companies and policymakers worldwide. The association aims to convey trust, transparency and security and to promote innovation. Ripple co-founder Chris Larsen joined a regulatory initiative last year, which also aims to promote the further development of legislation worldwide.

The price of XRP has been trending sideways (+0.36%) for the past 24 hours, and at the time of writing trades at USD 0.2351.

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About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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