Bitstamp implements tighter KYC measures for crypto withdrawals in the Netherlands

Quick Take

  • Crypto exchange Bitstamp has implemented stricter KYC measures for Dutch users.
  • “We are obligated to follow if we want to continue doing business in the country,” Bitstamp CTO David Osojnik told The Block.

Crypto exchange Bitstamp has confirmed to The Block that it has implemented stricter know-your-customer (KYC) measures for Dutch users.

According to these measures, which came into force on January 15, no Dutch user of Bitstamp is allowed to withdraw crypto to an outside address without meeting KYC rules.

"Before you can withdraw crypto from Bitstamp to an outside address, you have to add that address to your whitelist and provide a photo that proves it really is your address," Bitstamp recently told Dutch users. 

This means direct withdrawals to third parties are no longer allowed by Bitstamp. Users have to withdraw crypto from Bitstamp to their wallets first if they want to then send those funds to third parties.

"As a regulated cryptocurrency exchange, we have to follow the rules and guidelines of the jurisdictions where we are present," Bitstamp CTO David Osojnik told The Block, explaining:

"The changes we’ve made to our processes regarding cryptocurrency withdrawals for our customers in the Netherlands are in response to rules stipulated by the DNB [Dutch central bank], which we are obligated to follow if we want to continue doing business in the country."

De Nederlandsche Bank, the country's central bank, has supervised crypto service providers in the Netherlands since last year. At the time, the DNB said crypto firms must be registered with it, as well as follow anti-money laundering and sanctions rules.

Per those rules, "institutions must check incoming and outgoing payment transfers, and block and report them to DNB in the event of a hit."

"We realize this situation is not ideal and may inconvenience our customers. That is why we have implemented a solution that makes verifying cryptocurrency addresses as simple as possible while satisfying our regulatory requirements," said Osojnik.

Bitstamp has automatically enabled the "whitelisting" feature forDutch users' accounts, meaning they now have to add each cryptocurrency address to their whitelist before sending crypto to it. Whitelisting has become obligatory for all customers in the Netherlands, said Bitstamp.

While Bitstamp and a few other platforms such as Bitonic have obliged to the stricter rules, crypto derivatives giant Deribit moved out of the Netherlands last year for Panama.

Other crypto firms, on the other hand, closed shop last year, citing customer privacy concerns.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Binance Helps Take Down Cybercriminal Ring Laundering $500M in Ransomware

Over the past year, Binance has expanded its in-house AML detection and analytics capabilities. Based on research and analysis, as well as an understanding of cybercriminals' history and cashout tactics, Binance arrived at the conclusion that the biggest security problem in the industry today is money connected to cyberattacks being laundered through nested services and parasite exchanger accounts that live inside macro VASPs, including exchanges like
Read Full Story
Sponsored Post

Okcoin is launching SATs mode as part of wider retail push

  Okcoin, which was founded in 2013, is doing something different in a crowded field of crypto exchanges: it’s going to allow clients to denominate trades in bitcoin in units of satoshi, rather than BTC.  On this episode of The Scoop, Okcoin CEO Hong Fang joined host Frank Chaparro for a discussion on Okcoin’s rapid […]
Read Full Story
Sep 27, 2021, 5:27PM UTC