Cryptocurrency News

Bitstamp Implements Stricter KYC Measures For Its Dutch Users.

Cryptocurrency exchange Bitstamp confirms that it has implemented stricter KYC [Know-your-Customer] measures for its Dutch based users.

In line with the measures, that came into effect recently on 15th January, no Dutch user of Bitstamp is now permitted to withdraw crypto assets to an another address without meeting the standard KYC rules.

“Prior you can withdraw cryptos from Bitstamp to an another address, you’ve got to feature that address to your whitelist and provide a photograph that proves it really is your address,” Bitstamp recently told Dutch users.

This means direct withdrawals to 3rd parties are no longer permitted by Bitstamp. Users need to withdraw crypto from Bitstamp to their wallets first if they need to then transfer those funds to 3rd parties.

“As a regulated cryptocurrency exchange, we’ve to follow the principles and guidelines of the jurisdictions where we are present,” Bitstamp CTO David Osojnik revealed, explaining:

“The changes we’ve made to our processes regarding cryptocurrency withdrawals for our users within the Netherlands are in response to rules stipulated by the DNB [Dutch central bank], which we are obligated to follow if we would like to continue doing business within the country.”

De Nederlandsche Bank, the country’s financial institution , has supervised crypto service providers within the Netherlands since last year. At the time, the DNB added that cryptocurrency firms must be registered with it, also as follow AML [Anti-Money Laundering] & sanctions rules.

According to the rules, “institutions must check incoming as well as the outgoing payment transfers, and block and report them to DNB within the event of the hit.”

“We realize this example isn’t ideal and is definitely an inconvenience for our users. that’s why we’ve implemented an solution that creates verifying cryptocurrency addresses as simple as possible while satisfying our regulatory requirements,” added Osojnik.

Bitstamp has automatically permitted the “whitelisting” feature for Dutch users’ accounts, meaning they now need to add each cryptocurrency address to their whitelist before further transferring crypto assets thereto. Whitelisting has become obligatory for all users within the Netherlands, said Bitstamp.

While Bitstamp and a couple of other platforms like Bitonic have obliged to the stricter rules, cryptocurrency derivatives giant Deribit shifted out of Netherlands last year for Panama.

While other crypto firms, on the other hand also terminated their operations last year, citing the new customer privacy concerns.

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