The cryptocurrency industry is undergoing monumental transformation wherein, apart from massive growth, it is experiencing increased regulation and mainstream adoption.
Bitstanp will now require the Dutch users to complete a KYC to continue using its services.
Dutch crypto Users Required to Complete KYC
The cryptocurrency exchange Bitstamp has asked its users in the Netherlands to complete KYC formalities following the Dutch regulation, which mandates the owner of the third party wallets and exchanges to collect proof of identity. The exchange issues a statement detailing the changes in the crypto withdrawals for the Netherlands users due to the new Dutch regulation.
The statement said that from February 15th, 2021, the users must include their off-exchange currency addresses and provide a photo identity proof of owning those addresses. The crypto exchange did not have KYC completion as a mandatory step for using its services. Bitstamp clearly said that the change is due to Netherlands regulation; however, assumptions are rife that similar policies can be incorporated in the United States as well. The US treasury is building rules which may impose similar obligations on the users to complete their KYC formalities.
The users in the Netherlands have to furnish a photographed proof to showcase that they are the owner of the recipient wallet, and only then would they be able to make withdrawals from the crypto wallets. Bitstamp issued a letter stating that the users must whitelist their addresses before withdrawing crypto from their accounts. “Whitelisting is a security feature which was already available at Bitstamp, but now it has become obligatory for all customers affected by the new regulation in the Netherlands,” said the letter.
The law passed by the Netherlands government attempts to control money laundering.
Several users have openly mocked and condemned the law in which the crypto investors and traders have to showcase a screenshot of your wallet when withdrawing Bitcoin or other cryptos from exchanges. United States Treasury Secretary Steve Mnuchin has also presented similar recommendations. The crypto community is, however, questioning the move and criticizing it all together. As governments recognize the capabilities of cryptocurrency, there is also an increased watch on the compliance of rules and norms.
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