Global cryptocurrency exchange Coinbase debuts KYC rules for the Netherlands’ users when transferring digital assets from their Coinbase exchange account to a wallet off the Coinbase platform.
According to the blog post, the introduction of KYC rules for Netherlands users is to comply with local regulations.
Financial service providers must confirm the names of parties doing transactions on their platform in accordance with the 1977 Sanctions Act of the nation. Therefore, ensuring AML/CFT in financial transactions is a need.
As a result, individuals transferring funds to wallets not hosted by Coinbase will need to disclose certain details. This information comprises the full name of the recipient, the reason for the transfer, and the recipient’s residential address.
But it also said that the platform’s regular transactional experience would not be impacted by the changes.
Coinbase has announced similar changes to comply with local laws in other nations. The exchange announced in March that it would begin tracking off-platform transactions carried out by users in Canada, Singapore, and Japan.
A few days back, FATF finalized a targeted update on the implementation of the FATF requirements for virtual assets and virtual asset service providers (VASPs). One of the key outcomes regarding virtual assets was that the Netherlands lacks in terms of regulation of virtual asset service providers.
Pieter Hasekamp, director of the Dutch Bureau for Economic Analysis, recently called for a complete ban on crypto, saying that the nation needed to rein in the hype around cryptocurrencies.
Also Read: Coinbase to Discontinue its Trading Platform ‘Coinbase Pro’
