Bitcoin exchanges in The Netherlands are taking additional verification measures regarding BTC addresses in reference to the Dutch Central Bank (DNB)’s Sanction Act.
One such exchange Bitonic announced on Monday that it is now “forced” by the DNB to provide additional details regarding the intention behind BTC purchases and the kind of wallet you are using. As such, Bitonic is now,
“Obligated to verify that you are the legitimate owner of the given bitcoin address by requesting you to upload a screenshot from your wallet, or by signing a message.”
In the event of an actual hit in a sanctions list, the institution needs to notify DNB and either freeze any assets, block the transaction, or do both.
The exchange is against the measure and has pleaded with Bitonic to drop the requirement as it is ineffective and disproportionate. Bitonic is inviting its customers to send their complaints to firstname.lastname@example.org as an “opportunity to formally object to these additional measures and the registration of this data.”
According to the exchange, the Netherlands is currently the only country in the European Union to demand such “far-reaching measures.”
Reportedly, Switzerland also mandates such information from the cryptocurrency exchanges.