Bitstamp Crypto Exchange Implements More Stringent KYC Measures on Dutch Users


Cryptocurrency exchange Bitstamp has implemented more rigorous know-your-customer (KYC) measures for its Netherland-based users. According to the message sent by the oldest crypto exchange to its Dutch users, the exchange is “legally obligated” to suspend the account of any user who doesn’t comply with the latest rules and fail to provide all the required information.

No Dutch user can withdraw the funds without meeting these KYC rules, which came into force on Jan. 15. Users have to whitelist the address, for which they are required to provide a photo. Crypto assets have to be first sent to a wallet before moving them to a third party. The official message from the exchange reads,

“We are required to collect new information regarding finances, trading, and related activity by the 31 of January 2021 for all customers of Bitstamp Europe S.A., in order to fulfill our regulatory requirements. This means that you need to provide us with the required information and documents even if you have already done so in the past.”

A Twitter user that goes by Bitcoin Marcus, who is a Bitstamp customer, shared the email sent by the exchange on the social media platform. He further stated that Bitstamp has gone “even further than the law requires” by asking to share proof of funds, earnings, and from where did the user get their BTC. The exchange responded,

“Sorry to hear that our KYC is proving bothersome. Conducting these procedures ensures that we can keep providing a safe and reliable trading service to our users.”

These new rules are in line with those proposed by the Dutch central bank, De Nederlandsche Bank (DNB) that requires crypto service providers to be registered with them and comply with anti-money laundering and sanctions rules. As per these rules,

“Institutions must check incoming and outgoing payment transfers, and block and report them to DNB in the event of a hit.”

As we reported, platforms like Bitonic have followed these updated rules, while others like derivatives platform Deribit, crypto mining pools Simplecoin, BTC gaming platform Chopcoin, and crypto payments startup Bottle Pay moved out of the Netherlands citing customer privacy concerns.

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