Bitstamp Introduces KYC Rules For Dutch Traders: Report

Bitstamp introduces KYC rules for all Dutch traders which means they can no longer make withdrawals without providing additional information and photo proof that confirms they own the wallet so let’s read more in today’s cryptocurrency news.

Digital asset exchange Bitstamp banned the Netherlands-based users from withdrawing crypto to external wallets without initially confirming that they own the address. According to the letter issued by Bitstamp that was shared on Twitter by user “Bitcoin Marcus” all of the Dutch users will have to submit a third-party address alongside photo proofs evidence that they own the wallet before they make a withdrawal. The letter said:

 “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.”

Bitstamp introduces KYC rules which come as a response to anti-money laundering regulations that were drafted by the Dutch regulators back in November 2019 and passed into law 12 months later. The rules stipulated that the crypto service providers have to check whether their clients and or beneficiaries are on the EU or Dutch sanctions list before they start providing services also monitor the payment transfers.

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

The Netherlands-based BTC exchange Bitcoin informed its users that they need to comply with eh new measures for withdrawals with the exchange calling the enforcement of the policies a “nuisance.” Bitstamp users went even further in the criticism of the regulations with the Twitter user “xclers” mocking the exchange’s efforts to comply with the law:

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

Back in November, the quantitive analyst Plan B linked the regulations to policies that were recommended by the US Treasury Secretary Steve Mnuchin. Coinbase CEO Brian Armstrong also commented at that time, expressing major concerns over the proposed regulation on the self-hosted crypto wallets. It’s still not clear how the upcoming US President’s administration will handle KYC/AML enforcement in the crypto space. Others argued that Mnuchin’s policy has zero chances of becoming enforceable under the new presidential administration.

The Netherlands implemented these laws 2 weeks ago. You now have to screenshot your wallet when withdrawing bitcoin from Dutch exchanges, easy but annoying. Make sure you vote people in power that protect property rights and bitcoin, and remove people who don't protect freedom. https://t.co/BCcogxS8IE

— PlanB (@100trillionUSD) November 26, 2020

As recently reported on Bitstamp, the platform decided to halt XRP Trading for US citizens after Ripple was hit with a lawsuit by the US SEC.