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- Tighter KYC measures for Dutch users-Bitstamp
- Direct withdrawals to third parties not allowed
- Bitstamp CTO, David Osojnik said that they have no choice but to follow these regulations
Recently, crypto exchange Bitstamp has announced a fresh decision in an interview with The Block. It declared enforcement of stricter regulations on know-your-customer (KYC) for Dutch users.
The complexities behind Bitstamp’s decision
Bitstamp officially implemented these measures on January 15. According to them, no Dutch user of Bitstamp can withdraw crypto to an external address without accepting KYC rules.
Bitstamp also released a statement for Dutch users. It explained that the external address would be compulsory to add to the whitelist. Moreover, the portal will demand a photograph to prove the authenticity of the address. Only then will the Bitstamp enable the users to withdraw the crypto.
No direct withdrawals to third parties
This implies that Bitstamp will not allow direct withdrawals to third parties. It will be compulsory for the users to withdraw their crypto to their respective wallets to send funds to third parties.
Bitstamp CTO David Osojnik explained to The Block , that the regulated cryptocurrency exchange holds a decent stature in the market. Thus, the users will be bound to accept the jurisdictions’ rules and regulations because of their presence.
He further added that the respective changes are a reaction to the DNB [Dutch central bank] rules set down. These DNB rules are a compulsion for them to ensure their continuity in the business.
DNB’s new set of rules for crypto firms
The country’s central bank, De Nederlandsche Bank, has been regulating crypto service providers in the Netherlands for the past year. Currently, the DNB has made it compulsory for crypto firms to register with it.
Moreover, the users are required to follow sanction as well as anti-money laundering rules. According to these rules, the institutions must regulate and supervise the entry and exit of payment transfers. And in case of a hit, these respective transfers are supposed to be blocked and reported to DNB.
Bitstamp and various other platforms, for example, Bitonic have accepted the stricter rules. However, crypto derivatives giant Deribit shifted to Panama last year. Other crypto firms shut last year quoting the reason for privacy concerns of customers.
Thus, it will be interesting to see how the crypto market responds to this decision of Bitstamp. Moreover, the readers will have to wait to observe what changes these regulations bring to the ecosystem.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
