Bitstamp’s Dutch Users Must Provide KYC Documents On External Withdrawal Addresses


  • Bitstamp introduces new mandatory withdrawal rules to customers in the Netherlands.
  • Users will need to provide KYC documents for external wallet addresses to make crypto withdrawals.
  • Is this trend set to continue in other regions and exchanges?

In an email circulating across crypto social media channels, Bitstamp has activated new withdrawal rules for customers in the Netherlands, requiring them to prove that they are the owner of the withdrawal address. This follows the recent implementation of crypto laws by the Dutch government targeting crypto service providers such as exchanges. The email read,

“We have made some changes on how cryptocurrency withdrawals work on Bitstamp.”

“The new regulation requires us to collect proof that you are the owner of any third party wallet or exchange account before you can withdraw crypto to it.”

Users will need to whitelist any external withdrawal address by providing proof or picture that the account belongs to them. Whitelisting addresses were available on Bitstamp as a voluntary security measure but will now be a requisite procedure for Dutch customers to withdraw from the exchange. The directive kicked off to all Dutch customer accounts on Friday, 15th January 2021.

Moreover, users cannot withdraw their tokens to third-party wallets such as mixers and payment channels. They will need to withdraw the coins to their whitelisted address before transferring them to a third-party crypto wallet.

The Netherlands is one of the leading countries implementing the AMLD 5 directive proposed to EU countries to curb money laundering and counter-terrorism financing. Bitstamp compliance lies in the latest crypto laws drafted by Dutch lawmakers in November 2019 and passed late last year.

Crypto companies operating in Holland must register with the central bank, the De Nederlandsche Bank, BEG reported earlier. The central bank set a deadline of January 2020 for every crypto firm and service provider in the country to obtain a license. Recently, DNB approved the first license for a crypto exchange in the country, offering AMDAX BV, an Amsterdam-based crypto service provider, the power to offer crypto-assets to Dutch residents.

The Netherlands' case could open a case for other European states and other governments to follow their steps in regulating cryptocurrencies. Recently, U.S regulator FinCEN proposed draconian rules extending anti-money laundering (AML) regulation to non-custodial wallets that will see crypto transactions above $10,000 reported to authorities.

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