Cryptocurrency users in the Netherlands will now be required to present photographic ID to withdraw to external wallets after cryptocurrency exchange Bitstamp introduced the measures to comply with local regulations. The crypto exchange has said users will now be banned from withdrawals unless they are able to verify their ownership of external wallets, following the introduction of new regulations designed to tackle money laundering and other financial crimes in the European country.
Bitstamp will now require KYC before withdrawals.
In a letter from Bitstamp posted to Twitter, the exchange said the additional KYC layer would be required before user wallets can be whitelisted for withdrawals. “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 measures have been adopted in response to regulations that came into force in November, which require “crypto service providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list.” The regulations also require exchanges to monitor “incoming and outgoing payment transfers” to detect and flag irregularities.
Yes, this is real. People in the Netherlands now have to KYC their withdraw addresses. pic.twitter.com/S2H5Gszh9X
— Bitcoin Marcus ☣️🐝⚡️ (@plan_marcus) January 17, 2021
Bitstamp becomes the latest exchange to adopt new KYC regulations.
In announcing the measures, Bitstamp becomes the latest exchange to adopt the new requirements in the Netherlands. Others have already taken steps to tighten up their KYC requirements, with local exchange Bitconic describing the measures to its customers as “a nuisance.” As other crypto exchanges come on board, the policy looks set to ensure that all crypto users in the Netherlands provide additional ID documentation before being allowed to withdraw to external wallets. The KYC announcement comes amid a wider global tightening of restrictions on digital currency exchanges and their users.