Coinbase will force some customers to reveal who they are sending cryptocurrencies to
Customers in Canada, Singapore and Japan are among those affected by the new obligation, which takes effect in early April.
According to CoinDesk, the exchange will ask investors from these countries to provide the name, address and, in the case of Japan, the wallet of the recipient who will receive the cryptocurrencies withdrawn from the platform.
According to the email the company is sending to customers in these regions, this new rule is being enforced to comply with local regulations.
“While we always stand for what we think the laws should be, we must respect existing laws if we are to offer Coinbase’s suite of services to customers in that country,” a Coinbase spokesperson told CoinDesk.
On the other hand, the broker informs that these measures will not be applied to its entire customer base, being limited only to the three countries mentioned above.
In Canada, it will be mandatory to provide the name and address of the recipient on withdrawals in excess of 1,000 Canadian dollars in cryptocurrencies sent to a financial entity or other exchange, explains the broker’s FAQ.
In Singapore, informing the name and country of the recipient will be required for all withdrawals, without an amount limit. In Japan, all cryptocurrency transfers to recipients outside the country must include the recipient’s name, address and wallet — a measure to comply with the rules established by the Japan Cryptocurrency Trading Association (JVCEA).
The new obligations have displeased a significant part of the community, who believe that Coinbase’s stance goes against cryptocurrency’s privacy fundamentals.
“Wait, then what’s the point of crypto/blockchain, being outside of fin.system and all.. I may be better of sending fiat money 😂 crypto freaks may not realise but the market is getting extremely regulated,” wrote one Singaporean user while sharing the email received from Coinbase on Twitter.
“Basically, this will be the death of centralized exchanges. DeFi and DEX will thrive and people will soon start to realize that cryptocurrencies are not exempt from taxes and regulations,” added user @knozaki.
Basically this will be the death for CEX. DEFI and DEX will prospor. And people will soon start to realize crypto is not tax free and regulation free. AML , KYC will play a big role. On the other side, regulation will bring more institutions to the table, bigger market! MOON !
— knozaki (@knozaki) March 26, 2022