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Bitstamp imposes KYC for Dutch merchants withdrawing to exterior wallets

01/19/2021

To adjust to Dutch rules, Netherlands-based Bitstamp customers can not make withdrawals with out first offering photographic proof they personal the recipient pockets.

Digital asset change Bitstamp has reportedly banned Netherlands-based customers from withdrawing crypto to exterior wallets with out first verifying they personal the receiving tackle.

In keeping with a letter authored by Bitstamp that was shared on Twitter by consumer “Bitcoin Marcus,” Bitstamp’s customers in Holland should now submit third-party addresses alongside photographic proof they personal the pockets for whitelisting earlier than withdrawals might be processed.

“Whitelisting is a safety characteristic which was already out there at Bitstamp, however now it has turn into compulsory for all prospects affected by the brand new regulation within the Netherlands,” the letter acknowledged.

Bitstamp’s new withdrawal guidelines are in response to anti-money laundering rules that had been drafted by Dutch regulators in November 2019 and handed into legislation 12 months later.

These guidelines stipulate that “crypto service suppliers should test whether or not their purchasers and any final beneficiary homeowners are on a Dutch or European sanctions listing” earlier than offering providers, and monitor all “incoming and outgoing fee transfers.”

In November, Netherlands-based Bitcoin change Bitconic knowledgeable its customers they wanted to adjust to the brand new verification measures for withdrawals. On the time, the change referred to as the enforcement of the central financial institution’s coverage “a nuisance.”

Bitstamp customers went additional of their criticism of the rules, with Twitter consumer “xcsler” mocking the change’s efforts to adjust to Dutch legislation:

“Clearly, the following step might be to make folks liable for all subsequent transactions from that whitelisted tackle.”

In November, quantitative analyst PlanB likened the Dutch rules to insurance policies just lately beneficial by U.S. Treasury Secretary, Steve Mnuchin. Coinbase CEO Brian Armstrong made waves on-line on the time, expressing main issues over Mnuchin’s proposed regulation on self-hosted crypto wallets. 

It’s not but clear how incoming U.S. President Joe Biden’s administration will deal with KYC/AML enforcement within the crypto house. Lawyer Jake Chervinsky has argued that Mnuchin’s coverage has “precisely zero likelihood” of turning into an enforceable legislation below Biden’s choose for Treasury Secretary, Janet Yellen.

Cointelegraph reached out to Bitstamp for remark, however didn’t obtain a reply on the time of publication.