This is another sign of the tightening of regulations for cryptocurrency holders. Dutch users of the Bitstamp exchange must now take a picture of the recipient wallet of the funds they withdraw from the platform …
Bitstamp tightens withdrawal conditions for users located in the Netherlands
This new rule does not come directly from the exchange, of course , but from new regulations which are applied at the local level . As one Twitter user reported, Bitstamp sent a letter to all cryptocurrency holders located in the Netherlands:
“Yes, it’s serious. Persons located in the Netherlands must undergo Bitcoin Evolution measurements for their pick-up addresses. “
The letter explains:
“The new regulation requires us to collect proof that you are the holder of the wallet or the exchange account before being able to withdraw your cryptos. […] You must provide a photo proving that it is indeed your address . “
This means that users in the Netherlands can no longer withdraw their funds from Bitstamp, unless they “whitelist” the recipient address. They also cannot withdraw funds directly to third party accounts . They will first have to remove them from their personal wallet, before sending.
Why is this worrying
This new measure comes following a tightening of anti-money laundering rules by the Dutch government. Exchange platforms like Bitstamp are encouraged to check whether the “end beneficiaries” of transfers made with their services have been flagged on suspicious account lists.
The exchange Bitconic had already taken similar steps last November, and Bitstamp is unlikely to be the last platform located in the Netherlands to toughen its KYC measures for withdrawals. This type of regulation could be extended elsewhere in Europe and in the world . Already, there are rumors of similar regulations, which could be applied in the United States. Brian Armstrong, the CEO of Coinbase, launched the alert on the subject last November.
Efficiency that is the subject of debate
If we compare cryptocurrencies to cash, this type of measurement shows all its absurdity. As we have mentioned, nothing prevents a malicious person from transferring their cryptocurrencies to a personal wallet, before sending them to suspicious addresses. The enforcement of these KYC measures for withdrawals does not appear to be effective, and the threat to user privacy is very real.
In France, the trend unfortunately seems to be similar. On November 9, Finance Minister Bruno Le Maire introduced an ordinance aimed at “ strengthening the fight against the anonymity of crypto-asset transactions ”. The fight against the financing of terrorism is often waved like a red rag by politicians, but in reality, terrorists are still very largely financed by fiat currencies. Unfortunately, that does not stop this type of measures considered as liberticidal by the majority of the crypto community.