Bitstamp imposes KYC for Dutch traders withdrawing to external wallets

To comply with Dutch regulations, Netherlands-based Bitstamp users can no longer make withdrawals without first providing photographic proof they own the recipient wallet.

Digital asset exchange Bitstamp has reportedly banned Netherlands-based users from withdrawing crypto to external wallets without first verifying they own the receiving address.

According to a letter authored by Bitstamp that was shared on Twitter by user “Bitcoin Marcus,” Bitstamp’s users in Holland must now submit third-party addresses alongside photographic evidence they own the wallet for whitelisting before withdrawals will be processed.

“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,” the letter stated.

Bitstamp’s new withdrawal rules are in response to anti-money laundering regulations that were drafted by Dutch regulators in November 2019 and passed into law 12 months later.

These rules stipulate that “crypto service providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list” before providing services, and monitor all “incoming and outgoing payment transfers.”

In November, Netherlands-based Bitcoin exchange Bitconic informed its users they needed to comply with the new verification measures for withdrawals. At the time, the exchange called the enforcement of the central bank’s policy “a nuisance.”

Bitstamp users went further in their criticism of the regulations, with Twitter user “xcsler” mocking the exchange’s efforts to comply with Dutch law:

“Clearly, the next step will be to make people responsible for all subsequent transactions from that whitelisted address.”

In November, quantitative analyst PlanB likened the Dutch regulations to policies recently recommended by U.S. Treasury Secretary, Steve Mnuchin. Coinbase CEO Brian Armstrong made waves online at the time, expressing major concerns over Mnuchin’s proposed regulation on self-hosted crypto wallets. 

It is not yet clear how incoming U.S. President Joe Biden’s administration will handle KYC/AML enforcement in the crypto space. Lawyer Jake Chervinsky has argued that Mnuchin’s policy has “exactly zero chance” of becoming an enforceable law under Biden’s pick for Treasury Secretary, Janet Yellen.

Cointelegraph reached out to Bitstamp for comment, but did not receive a reply at the time of publication.

Continue reading

Bitcoin Magazine’s Guide To Exchange Scaling Support

We’ve compiled a list of the most popular bitcoin exchanges, along with their level of support for Bitcoin’s central scaling upgrades.

The post Bitcoin Magazine’s Guide To Exchange Scaling Support appeared first on Bitcoin Magazine.

Continue reading

South Korean Gaming Giant Planning to Buy Crypto Exchange Bithumb for $460 Million

South Korean Gaming Giant Planning to Buy Crypto Exchange Bithumb for $460 MillionNexon, the South Korean multi-billion-dollar gaming conglomerate, is reportedly planning to buy a 65% stake in troubled crypto exchange Bithumb in a deal worth about 500 billion won ($460 million). ● According to local media reports, Nexon is to buy all the shares owned by Bithumb chairman Lee Jung Hoon, including several others totaling up […]

The post South Korean Gaming Giant Planning to Buy Crypto Exchange Bithumb for $460 Million appeared first on Bitcoin News.

Continue reading

Crypto Markets Rebound, BTC Taps Another All-Time High, Bitstamp Drops XRP for US Customers

Crypto Markets Rebound, BTC Taps Another All-Time High, Bitstamp Drops XRP for US CustomersThe price of bitcoin and a myriad of digital currencies have seen some significant gains on Christmas day. Bitcoin touched another all-time price high at $24,662 per coin, while many other crypto assets rebounded from the previous day’s slump. On December 25, 2020, bitcoin (BTC) touched an all-time high (ATH) at $24,662 per coin after […]

The post Crypto Markets Rebound, BTC Taps Another All-Time High, Bitstamp Drops XRP for US Customers appeared first on Bitcoin News.

Continue reading