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Coinbase customers in the Netherlands are faced with a dilemma as they soon have to meet additional know-your-customer (KYC) requirements when moving crypto to wallets held outside of the platform.
Beginning June 27, Coinbase users in the Netherlands will have to disclose the recipient’s full name and residential address as well as the purpose of the transfer, when sending crypto off the exchange. In some occasions, customers would even be required to link a Coinbase (COIN) wallet to their main Coinbase account to confirm that they control the receiving wallet.
On Thursday, Coinbase sent an email to its customers it is making these changes as “required by local regulations,” thereby referring to the Financial Action Task Force’s (FATF) travel rule. In order to prevent fraud and money laundering, the rule implies, crypto service providers need to exchange the personal information of the senders and receivers.
Coinbase intentions are questionable, since the travel rule is not mandated in the Netherlands at the moment. It would therefore be no surprise if the Dutch crypto enthusiast are turning their back to the exchange and flee to alternatives such as Binance.
Coinbase recently announced a huge cut in its workforce, saying goodbye to 18% of its people.