People exchanging digital assets using Coinbase won’t have to worry about the upcoming changes as they won’t affect them.
Last week, the crypto exchange platform Coinbase announced that all of its Netherlands-based users will have to meet new know-your-customer (KYC) requirements if they still plan to send crypto to a wallet that is off the Coinbase platform.
According to the official statement, the changes will take effect today, meaning that users of the platform will need to include their full name and address, as well as provide the purpose of the transfer. On top of that, Coinbase might also ask its users to connect their Coinbase (COIN) wallet to their main account, which will reportedly provide more safety and authentication.
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On top of that, Coinbase implied that the few changes were made in order “to comply with local regulations,” as users living in the Netherlands will be subject to the new KYC requirements. This, in fact, is a direct reference to the Financial Action Task Force’s (FATF) travel rule. The measure actually dictates that crypto service providers must possess the personal information from both entities involved in the transactions in order to prevent money laundering.
Back on June 11, the director of the CPB Bureau for Economic Policy Analysis Pieter Hasekamp mentioned that the Netherlands has been moving very slowly to ban the use of Bitcoin (BTC), whereas other regulators in the country added that cryptocurrencies should not be considered as a legal payment method for various goods and services.
Jeff Garzik, one of the former Bitcoin (BTC) core devs, recently mentioned on his Twitter account that the list of countries required to meet new KYC measures will expand in the near future. He added that it’s always wise to withdraw and deposit from your own wallet as it ensures more privacy and is legal 100%.
In other news, earlier in June, Coinbase announced that it would cut off around 18% of its employees due to the current crypto bear market, indicating that the move is part of its cost-cutting strategy.
