XRParrot, an innovation by one of XRP community’s strong developers converting Euro to XRP token, has abruptly shut down over regulatory compliance, NewsLogical has been briefed.
The innovation is owned by Wietse Wind, whose software firm, XRPL Labs, received funding from Ripple’s investment arm, Xpring, in February 2019.
Based on available information, XRParrot is a registered business in the Netherlands that launched to make it easy for residents of Europe, having an IBAN bank account, to acquire XRP. In short, XRParrot turns fiat into XRP.
Now, XRParrot won’t be able to continue serving the XRP Community due to the increasing need for regulatory compliance.
However, anyone who makes accidental or automatic transfers to XRParrot will have their funds processed for some time.
Wietse, the creator of XRParrot said, “with mixed feelings I decided to do a controlled “soft” shut down of XRParrot”, confirming that no new orders will be accepted.
“Support tickets and accidental / automated transfers will still be processed, and users will be (then) informed with a text message,” he said.
Meanwhile, Wietse informed that XRParrot won’t be able to pursue regulatory licensing due to the financial implication.
As I tried to keep the fees to an absolute minimum (and I don't feel like overcharging), there's no way I can make XRParrot work in the new, regulated playing field. I am pro regulation, but the costs (registration/license, legal, operational) simply won't be covered.
— Wietse Wind { 𝚡𝚛𝚙𝚕𝙳𝚎𝚟: 𝚝𝚛𝚞𝚎 } (@WietseWind) January 16, 2020
Interestingly, the regulatory procedure will not affect XUMM, since the platform does not entertain fiat-crypto conversion and does not involve any custody.
When Wietse was asked if Ripple could be of help, the community developer said the problem is not even about funding, but about “providing a service that no longer can break even”. He informed his followers that there are enough alternatives, though they are not easy to use. Afterward, he thanked the over 3000 people who made use of the platform.
In October 2019, NewsLogical reported that XRParrot reached the €1 million milestone, seven months after the platform processed its 500,000th Euro to XRP conversion in April.
Ripple’s Xpring Invests in Wietse Wind’s XRPL Labs
Early 2019, Vanessa Pestritto, Director of Xpring at Ripple, said the investment arm of the software firm would be backing XRPL Labs, a firm created by Wietse Wind.
At that time, the developer was working on diverse XRP-centered innovation which includes a mobile wallet and cold storage operating system, a decentralized exchange, and some others.
Xpring said it invested an undisclosed amount of money in Wietse’s initiative.
Vanessa said about XRPL Labs: “He has built a technology consulting company, which serves numerous clients ranging from large scale companies to smaller offices. He’s also built and ran a software company that provided a platform as a service for rapid web development. We are thrilled to announce that Xpring has invested in Wietse Wind’s XRPL Labs.”
