Coinbase plans several alterations from June 27 as per its latest post on Coinbase’s blog. The aim is to provide its facilities for the consumers residing in the Netherlands by complying with the country’s law.
Under the same, Coinbase states that it is mandatory for clients sending cryptos to a non-Coinbase address to attach transaction and recipient info. This will guarantee Coinbase users to buy, sell, and deal with digital assets without any source of hinderance.
The decision to make changes in Coinbase policy was made due to a crypto ban decided a few weeks ago by Dutch regulators.
Director of the Dutch Bureau for Economic Analysis Pieter Hasekamp’s verdict for a ban on cryptocurrencies demanded that these crypto-tides are resulting in the downfall of the Netherlands in its efforts to stamp them out.
Virtual property, as the authority claimed, cannot be used for time investments or payment, on its negative side.
This decision to ban cryptocurrencies was even backed when Dutch financial regulator Paul-Willem van Gerwen, gave a thumbs up while Capital Markets and Transparency Supervision at the AFM, to the fact that the virtual property is not much appropriate when it comes to trade or investments
With The Sanctions Act of 1977 into force, it was made compulsory for e-commerce sites proposing financial facilities to verify the identity of users before they move ahead with any sort of monetary transaction via their platform. To achieve this, it is essential to comply with AML and CFT regulations when it comes to financial services.
This resulted in consumers who are not being in alliance with Coinbase, will need to share personal details such as info containing the receiver’s full name, the reason behind the transaction, the residential address of the receiver, etc., while they are transferring to the wallets.
A few months ago, Coinbase made changes to existing rules for its users in Japan, Singapore, and Canada. After the update, the users of these nationalities were asked to furnish information about the recipient crypto wallet in case the cryptocurrencies are being sent to a non-Coinbase wallet.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.