BSV
$49.02
Vol 14.99m
-2.19%
BTC
$69513
Vol 16940.39m
0.28%
BCH
$353.08
Vol 193.68m
1.52%
LTC
$69.29
Vol 231.54m
-1.19%
DOGE
$0.15
Vol 1514.71m
0.11%
Getting your Trinity Audio player ready...

Digital currency users in the Netherlands will now be required to present photographic ID to withdraw to external wallets, after cryptocurrency exchange Bitstamp introduced the measures to comply with local regulations.

The digital asset exchange has said users will now be banned from withdrawals unless they are able to verify their ownership of external wallets, following the introduction of new regulations designed to tackle money laundering and other financial crimes.

In a letter from Bitstamp posted to Twitter, the exchange said the additional KYC layer will be required before user wallets can be whitelisted for withdrawals.

“Whitelisting is a security feature which was already available at Bitstamp, but now it has become obligatory for all customers affected by the new regulation in the Netherlands.”

The measures have been adopted in response to regulations that came into force in November, which require “crypto service providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list.”

The regulations also require exchanges to monitor “incoming and outgoing payment transfers,” in order to detect and flag irregularities.

In announcing the measures, Bitstamp becomes the latest exchange to adopt the new requirements in the Netherlands. Others have already taken steps to tighten up their KYC requirements, with local exchange Bitconic describing the measures to its customers as “a nuisance.”

As other exchanges come on board, the policy looks set to ensure that all crypto users in the Netherlands provide additional ID documentation before being allowed to withdraw to external wallets.

It comes amid a wider global tightening of restrictions on digital currency exchanges and their users.

Proposals for greater regulation and KYC on self-hosted digital currency wallets have also previously won the backing of the U.S. Treasury, though it remains unclear whether these will be supported by the incoming Biden administration.

See also: CoinGeek Live panel, Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers

Recommended for you

This Week in AI: US tightens AI restrictions on China
The U.S. issued a rule restricting American investments in China, Hong Kong, and Macau, specifically within industries like AI, semiconductors,...
November 1, 2024
Vietnam sets blockchain vision for regional leadership
Vietnam's Prime Minister Ho Duc Phoc issued Decision No. 1236/QD-TTg, emphasizing blockchain's potential as a major driver of the Fourth...
November 1, 2024
Advertisement
Advertisement
Advertisement