Cryptocurrencies were rolled out into the world in order to steer clear of the centralized institutions. Bitstamp seems to be complying with the laws imposed by these institutions as it recently mandated KYC for its users in the Netherlands.
Bitstamp Now Requires Users To Submit Photographic Proof
Bitcoin and other cryptocurrencies stood out as they were not affiliated with any centralized entity or financial institution. However, over the years, as popularity and the value of the crypto market surged, people started pouring their funds into it. This also lured in perpetrators who wanted to pocket quick money without working hard. To combat this, governments started scrutinizing the platforms that were part of the industry. Bitstamp was seen abiding by these laws put forth by the Dutch government.
In a recent tweet, a Twitter user, Bitcoin Marcus revealed that users of the prominent cryptocurrency exchange, Bitstamp were required to submit KYC related documents in order to carry out withdrawals. The tweet read,
The post stressed on the latest rules put forth by the financial regulators of the Netherlands. The exchange wrote,
“Due to new regulation regarding cryptocurrencies introduced by the Dutch government, we have made some changes to how cryptocurrency withdrawals work at Bitstamp. […] 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.
Users can carry this out on the exchange’s web page. The exchange went on to enable the withdrawal whitelisting option starting from 15 January 2021.
These rules came about in November 2020 where the Dutch Central Bank mandated the verification process. The cryptocurrency exchange revealed that its Europe wing wanted to serve its users while upholding security.
Netherlands wasn’t the only country doing so as several others including the USA have started implying stricter laws against crypto.