In a new blog post published on Thursday, Coinbase says that starting Monday, all of its customers in the Netherlands will have to meet new Know Your Customer, or KYC, requirements when transferring digital assets to wallet addresses that are not based on exchange. This includes providing the recipient’s full name, the purpose of the transfer, and the recipient’s full residential address. Transfers between Coinbase accounts are not affected by the new rule.
The exchange noted that the change will only affect Coinbase users in the Netherlands and that it is being implemented to comply with national digital asset regulations. Non-custodial wallets are subject to the country’s Sanctions Act 1977, which requires providers of financial services, such as crypto exchanges, to verify the identity of people or legal entities with whom they have a business relationship. The law came into force to prevent the transfer of financial assets for purposes such as money laundering or terrorist financing.
Earlier this month, Pieter Hasekamp, director of the Dutch Bureau of Economic Analysis, called on the Netherlands to ban Bitcoin and said the country had fallen behind in an attempt to dampen its hype on the crypto. Meanwhile, regulators in the country have warned that digital assets are not suitable either as a means of payment or as a means of investment.
In March, Coinbase announced it would track off-platform transactions in Canada, Singapore and Japan, citing regulatory compliance with local jurisdictions. Canadian users would have to provide recipient information even when transferring funds between their own crypto wallets, although all of these KYC requirements are exempt for transactions below $801. Meanwhile, Japanese and Singaporean users must provide transaction details for each off-platform transaction with no minimum threshold.