Bitstamp Starts Tracing Withdrawal Addresses
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18 January
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Cryptocurrency exchange Bitstamp reportedly starts requiring its users from the Netherlands to confirm their ownership over the off-exchange withdrawal addresses. The exchange is now obliged to verify its clients from the Netherlands in accordance with the new regulatory policies by the Dutch government, Crypto Briefing first reported, citing email notification leaked on Twitter.

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The email notification says the exchange from now on will be collecting proofs a user is "the owner of any third-party wallet or exchange account" before he or she can withdraw crypto to it.

"Whitelisting 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," the exchange wrote.

As iHodl reported in November last year, the Dutch Central Bank (DNB) imposed new limitations on cryptocurrency exchanges with an additional verification measure regarding bitcoin (EXANTE: Bitcoin) addresses. According to the local cryptocurrency exchange Bitonic, the DNB "effectively forced" it to enhance the verification process in reference to the Sanction Act.

According to the watchdog, crypto providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list and report any hits to DNB. The Sanction Act compliance also entails that institutions "must check incoming and outgoing payment transfers, and block and report them to DNB in the event of a hit."

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In May 2020, the Netherlands-based cryptocurrency exchange BitKassa also announced the suspension of all services due to the excessive demands of the watchdog. The exchange said that the Dutch Ministry of Finance did a great job serving the Dutch Central Bank "in enforcing unreasonable regulation upon Dutch Bitcoin companies."

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