Coinbase to Track Off-Exchange Transactions for Customers in the Netherlands

Coinbase to Track Off-Exchange Transactions for Customers in the Netherlands

In a Thursday post, Coinbase says that starting June 27, all of its customers in the Netherlands will have to complete new Know Your Customer, or KYC, requirements when transferring digital assets to non-exchange wallet addresses. This includes providing the recipient’s full name, the purpose of the transfer, and the recipient’s full residential address. Transfers between Coinbase accounts are not affected by the new rule.

The exchange noted that the change will only affect Coinbase users in the Netherlands, and is being implemented to comply with the country’s digital asset regulations. Non-custodial wallets are subject to the country’s 1977 Sanctions Act, which requires financial service providers, such as cryptocurrency exchanges, to verify the identity of persons or legal entities with whom they have a business relationship. The law came into force to prevent the transfer of financial assets for the purpose of curbing money laundering and financing of terrorism.

Earlier this month, Pieter Hasekamp, ​​director of the Dutch Bureau of Economic Analysis, called for the Netherlands to ban the use of Bitcoin and that the country had fallen behind in its attempt to curb the cryptocurrency boom. Meanwhile, the country’s regulators have warned that digital assets are not suitable as a means of payment or as a means of investment.

In March, Coinbase announced that it would track off-platform transactions in Canada, Singapore, and Japan, citing regulatory compliance of local jurisdictions. Canadian users would have to provide recipient information even when transferring funds between their own cryptocurrency wallets, though all of those KYC requirements are waived for transactions under $801. Japanese and Singaporean users, meanwhile, have to provide transaction details for each off-platform transaction, with no minimum threshold.

Read:  Korean Cryptocurrency Exchanges Already Compliant with the Travel Rule

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.