Bitstamp Begins KYCing Withdrawals to Dutch Wallets

Reading Time: 2 minutes
  • Bitstamp users in the Netherlands face tighter controls over their withdrawals
  • Each withdrawal address must now be whitelisted with photographic evidence of ownership required for each
  • The Netherlands has been one of the foremost adopters of European crypto regulations

The increasingly tight cryptocurrency regulations in the Netherlands are starting to have an impact after Dutch Bitstamp users found that they now have to prove ownership of withdrawal addresses. In an email sent to Dutch Bitstamp users and posted on Twitter, the exchange references “new regulation regarding cryptocurrencies” which they say requires them to obtain evidence of ownership for each cryptocurrency withdrawal address. Such measures may have come as a shock to the system for users, but crypto enthusiasts in all countries may well find themselves subjected to similar treatment in the near future.

Bitstamp Asks For Photographic Proof of Ownership

The Bitstamp email was tweeted by Twitter user Bitcoin Marcus, which outlines the steps that Dutch users must how take:

…before you can withdraw 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.

Unlike regular KYC requirements where clear instructions are given about what should be in the photo, the Bitstamp email doesn’t go into any details whatsoever, leaving the user to interpret what proof of wallet address consists of. Bitstamp also states that “withdrawals from your Bitstamp account to third parties are no longer allowed”, with all withdrawals needing to go to whitelisted address first before they can be sent anywhere.

Coming to an Exchange Near You Soon

Crypto regulation in the Netherlands has been notably some of the tightest in Europe, with the country being one the foremost adopters of AMLD5 and FATF guidelines in recent years. This has led to many crypto entities either being forced to close or, in the case of Deribit, leaving for pastures new.

While these steps may have come as a shock for Bitstamp users, with countries all across the world seeing cryptocurrency regulations creeping up their agenda, this move by Bitstamp could end up being the rule rather than the exception.