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Coinbase introduces KYC rules for its Netherland users to comply with local legislation

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Coinbase announced its users from the Netherlands will be required to comply with KYC rules when transferring to wallets outside of Coinbase. He stated that this rule would bring his activities in line with local law.

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The country’s 1977 sanctions law requires financial service providers to verify the identity of the parties to a transaction on their platform. Thus, it is a mandatory requirement to ensure AML/CFT in financial transactions.

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As a result, users making transfers to wallets outside of Coinbase will be required to provide information about the transaction. This includes the recipient’s full name, the purpose of the transfer, and the recipient’s residential address.

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However, it was stated that the latest introduction will not affect the normal transactional experience on the platform.

Meanwhile, Coinbase has made similar claims about compliance with local regulations in other countries. In March, the company announced that it would begin tracking off-platform transactions made by users in Canada, Singapore and Japan.

Growing crypto restrictions

Regulators in the Netherlands have recently called for increased regulation of the space, with some demanding a total ban.

Peter Hasekamp, ​​director of the Dutch Bureau of Economic Analysis, called for a complete ban, saying the country should curb the crypto hype. He argued that the use of cryptocurrency is associated with security issues, fraud risks and scams.

Similarly, Paul-Willem van Gerwen, head of capital markets oversight and transparency at the Netherlands Financial Markets Authority (AFM), has declared digital assets unsuitable for payments or investments.

He expressed similar concerns about the transparency of cryptocurrency markets and the susceptibility to manipulation and other criminal activity.

However, until the entry into force of the EU law on the regulation of crypto-asset markets (MiCA), AFM does not have powers in relation to crypto markets.

Europe is stepping up the pace of regulation.

The Crypto Asset Markets Regulation (MiCA), proposed in 2020, is the EU’s response to the need for comprehensive regulation of digital assets. Increased market volatility has heightened calls for a regulatory framework for digital assets.

The tripartite composition of the European Commission, the European Parliament and 27 Member States make up the MiCA negotiating bodies. The negotiators recently met in June and are expected to meet again by June 30 to prepare a rule in time for France’s six-month rotation as president, according to a Bloomberg report.

European Commissioner Mairead McGuinness also called for fast-track talks and a compromise on the rules. She stated that the collapse of TerraUST and Russia’s alleged use of crypto assets to evade sanctions made the rules more relevant.

Similarly, Verena Ross, head of the European Securities and Markets Authority, made a similar call in May. She called for the swift completion of cryptographic regulations, which she said she was looking forward to “with great anticipation”.

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