Know Your Customer (KYC) standards are now included by Coinbase for its customers in the Netherlands for compliance-related reasons. Before they can move cryptocurrency to other wallets, the latter are required to submit more details.
What may users of Dutch Coinbase expect?
Changes to the procedure for sending cryptocurrency to the Netherlands were made public by Coinbase. Dutch citizens are therefore required to perform a new exercise as of this morning.
They must give more specific details about the transaction and the beneficiary. This information contains the transaction’s purpose, the recipient’s full name, and house address.
Keep in mind, though, that this only applies to users who want to transfer cryptocurrency from their Coinbase account to a wallet that is not connected to an exchange.
Additionally, the latter provides features for when a user transmits money to a different wallet that he owns. However, the exchange retains the ability to demand that any user who wishes to conduct a transaction outside the platform first links a Coinbase wallet to their primary Coinbase account. This would demonstrate their ownership of the destination address.
Finally, these restrictions have no influence on how users utilize the site to acquire, sell, or exchange digital assets.
Observe the restrictions on winds and tides.
This clause would be included in a desire to adhere to local laws and regulations. These laws include the Prevention of Money Laundering and Terrorist Financing Act and the Sanctions Act of 1977. These texts state that before facilitating any transaction, businesses providing financial services must first confirm the identification of their clients.
There is no evidence that this decision was made as a consequence of pressure from local authorities, despite the fact that the Dutch government has recently been highly antagonistic toward cryptocurrencies.
However, it is certain that this choice may have a significant financial impact on the exchange. In fact, the cryptocurrency community has not reacted kindly at all to this news. Some even claim that this will prevent users from using the Coinbase marketplace for NFTs.
Coinbase may think it is acting morally by having a proactive approach to compliance. Recall that the exchange has used a similar tactic when it introduced TRUST, a platform that enables exchanges to convey regulatory information securely.
