- Luxembourg-based crypto exchange Bitstamp has imposed a Know Your Customer (KYC) verification process on Dutch users of the platform
- This authentication will have to be completed by Netherlands-based traders before accessing their digital assets
- Meanwhile, users from Holland will have to provide third-party addresses in addition to photographic proof of being the owners of their respective digital wallets before making withdrawals
Bitstamp, a cryptocurrency exchange platform, has imposed a ban on users based in the Netherlands from withdrawing digital assets to external wallets without verifying beforehand of being the receiving address owners.
No Verification, No Withdrawal For Dutch Users on Bitstamp
Popular digital currency exchange Bitstamp has outlined regulatory guidelines to be followed by users of the platform based in the Netherlands and Holland. According to the exchange, Dutch users will now be required to complete a detailed verification measure in compliance with the Know Your Customer (KYC) process before receiving authorization to access their digital wallets.
These instructions were provided to Dutch users through a letter, which has been posted online by a Twitter user called “Bitcoin Marcus.” He confirmed the mandate given by Bitstamp to Netherlands-based users, who will have to KYC their respective withdrawal addresses before accessing their virtual wallets. Simultaneously, the user base in Holland will also have to provide photographic proof along with their third-party addresses as evidence of being the owners of their digital wallets to whitelist. This process will have to be completed before making any withdrawals of cryptocurrency. The letter highlighted that whitelisting already existed on the platform as a security feature, which has now become compulsory for all Dutch users due to the new regulations imposed by Bitstamp.
New Rules Following Anti-Money Laundering Regulations
In November 2019, the Netherlands’ regulatory authorities drafted anti-money laundering rules that were incorporated by the law in 2020, after a year of being introduced. These directives specify that digital currency service providers have to conduct a background check to identify whether their users are registered on a European or Dutch sanctions list. This process of verification has to be completed before providing services to such users. Regulation of all transfers is also required.
In November 2020, Bitcoin, a crypto exchange platform based in the Netherlands, communicated to its users that they have to follow the new authentication measures before making withdrawals. During that time, the stock market described the application of the novel policy as a “nuisance”.
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