The cryptocurrency exchange platform Bitstamp is reportedly demanding additional Know Your Customer compliance steps for users based in the Netherlands.
according to a notification to the Twitter user “Bitcoin Marcus”, a Bitstamp user, According to the platform, account holders in the Netherlands have until the end of January to provide additional verification documents or they risk having their accounts blocked.
today @ Bitstamp it has gone beyond what is required by law. Now they want me
– Show them how much I make
– I showed them where I got my Bitcoin from
– Proof of funds
Seriously!! What the hell? And I can’t retreat and go so I have to stick to the rules … pic.twitter.com/ze4ixNJJyd
– Bitcoin Marcus ☣️⚡️ (@plan_marcus) January 25, 2021
As part of the additional KYC protocols, users are required to provide details of their assets, nationality and proof of residence. Other documents required by Bitstamp are the origin of the funds, both fiat money and cryptocurrencies.
Actually, The exchange forces customers based in the Netherlands to disclose sensitive personal information such as salaries and the origin of their investments.
These KYC steps complement a previous order that required users to whitelist their third-party payout addresses by providing photographic proof of ownership for these wallets.
In response to Bitcoin Marcus complaints on Twitter, Bitstamp commented, “Unfortunately, this procedure is required for our users in the Netherlands due to the new cryptocurrency regulation introduced by the Dutch government.”
For Bitcoin Marcus, However, Bitstamp does its best to please the Dutch authorities, especially the central bank Only exchanges based in the Netherlands require these additional KYC compliance steps.
David Osojnik, Bitstamp’s CTO, commented on customer complaints about KYC policies to Cointelegraph:
“The solution that we have implemented to verify cryptocurrency withdrawal addresses is extremely simple and as intrusive as possible, while meeting the requirements set by the Dutch authorities. However, we are aware that this situation can be uncomfortable for our customers, and we encourage you to do so. ” Contact your local representative or the DNB in this regard. “
The Dutch authorities already issued new requirements for the exchange of cryptocurrencies in 2019, and the measures came into force in November 2020. As previously reported by Cointelegraph, Bitonic, a crypto exchange in the Netherlands, called the new measures “disruptive”.
The requirement that users provide personal and financial information can also pose a security risk. Centralized databases containing this sensitive data are often a target for cyber criminals.
Exchanges and other cryptocurrency companies have been the victims of malicious cyber attacks that exposed user data. Hardware wallet maker Ledger is a good example, as nearly 300,000 of its users have seen their data compromised by hackers.
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