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Bitstamp Bans Netherlands-Based Users From Withdrawing Crypto To External Wallets

Bitstamp, the digital asset exchange, has banned Netherlands-based users from withdrawing crypto to external wallets without first verifying they own the receiving address.

It has been reported according to a letter authored by Bitstamp that was shared on Twitter by user “Bitcoin Marcus” that Bitstamp’s users in Holland must now submit third-party addresses alongside photographic evidence they own the wallet for whitelisting before withdrawals will be processed.   

Yes, this is real. People in the Netherlands now have to KYC their withdraw addresses. — Bitcoin Marcus ☣️🐝⚡️ (@plan_marcus) January 17, 2021

The letter stated:

“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.”

However, Bitstamp’s 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.

The report said that these rules stipulate that “crypto service providers must check whether their clients and any ultimate beneficiary owners are on a Dutch or European sanctions list” before providing services, and monitor all “incoming and outgoing payment transfers.”

Bitstamp users went further in their criticism of the regulations, with Twitter user “xcsler” mocking the exchange’s efforts to comply with Dutch law:

“Clearly, the next step will be to make people responsible for all subsequent transactions from that whitelisted address.”

Likewise, in November, quantitative analyst PlanB likened the Dutch regulations to policies recently recommended by US Treasury Secretary, Steve Mnuchin. 

The Netherlands implemented these laws 2 weeks ago. You now have to screenshot your wallet when withdrawing bitcoin from Dutch exchanges, easy but annoying. Make sure you vote people in power that protect property rights and bitcoin, and remove people who don't protect freedom. — PlanB (@100trillionUSD) November 26, 2020

Thus, Brian Armstrong, the CEO of Coinbase, made waves online at the time, expressing major concerns over Mnuchin’s proposed regulation on self-hosted crypto wallets. 

Source: Cointelegraph



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