Digital asset exchange Bitstamp has reportedly banned Netherlands-based users from withdrawing crypto to external wallets without first verifying they own the receiving address.<\/p>\n
According to a letter authored by Bitstamp that was shared on Twitter by user \u201cBitcoin Marcus,\u201d Bitstamp\u2019s users in Holland must now submit third-party addresses alongside photographic evidence they own the wallet for whitelisting before withdrawals will be processed. <\/p>\n
\u201cWhitelisting 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,\u201d the letter stated. <\/p>\n
Bitstamp\u2019s new withdrawal rules are in response to anti-money laundering regulations that were drafted by Dutch regulators in November 2019 and passed into law 12 months later.<\/p>\n
These rules stipulate that \u201ccrypto service providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list\u201d before providing services, and monitor all \u201cincoming and outgoing payment transfers.\u201d<\/p>\n
In November, Netherlands-based Bitcoin exchange Bitconic informed its users they needed to comply with the new verification measures for withdrawals. At the time, the exchange called the enforcement of the central bank\u2019s policy \u201ca nuisance.\u201d<\/p>\n
Bitstamp users went further in their criticism of the regulations, with Twitter user \u201cxcsler\u201d mocking the exchange\u2019s efforts to comply with Dutch law:<\/p>\n
\u201cClearly, the next step will be to make people responsible for all subsequent transactions from that whitelisted address.\u201d<\/p><\/blockquote>\n
In November, quantitative analyst PlanB likened the Dutch regulations to policies recently recommended by U.S. Treasury Secretary, Steve Mnuchin. Coinbase CEO Brian Armstrong made waves online at the time, expressing major concerns over Mnuchin\u2019s proposed regulation on self-hosted crypto wallets.\u00a0<\/p>\n
It is not yet clear how incoming U.S. President Joe Biden\u2019s administration will handle KYC\/AML enforcement in the crypto space. Lawyer Jake Chervinsky has argued that Mnuchin\u2019s policy has “exactly zero chance” of becoming an enforceable law under Biden\u2019s pick for Treasury Secretary, Janet Yellen.<\/p>\n