Netherlands-Based Coinbase Customers Must Submit KYC Data When Transferring Crypto Off-Platform – Bitcoin Regulation News

Coinbase has announced that the company plans to introduce a number of changes for customers in the Netherlands to comply with the Sanctions Act 1977, a law that recently enforced know-your-customer (KYC) guidelines. ) to non-custodial portfolios. If the person living in the Netherlands wants to send crypto to a third-party wallet through Coinbase, they must identify the wallet owner’s name, the purpose of the transfer, and the recipient’s full residential address.

June 27, Coinbase Says KYC Information Will Be Required in the Netherlands for Outgoing Crypto Transfers

Dutch Coinbase customers may have a harder time sending funds to people with a third-party or noncustodial wallet if they don’t provide KYC information. Starting June 27, 2022, Coinbase will require users in the Netherlands to provide KYC data if they plan to send crypto to a wallet outside of the Coinbase platform.

Coinbase says the new rules are enforced because the company must comply with local regulations. The Sanctions Act 1977, combined with the Prevention of Money Laundering and Terrorist Financing (Wwft) Act, requires Virtual Asset Service Providers (VASPs) to provide KYC data on outgoing transactions involving non-custodial and third-party wallets.


The Sanctions Act 1977 is codified by the Netherlands Authority for the Financial Markets (AFM) and the Central Bank of the Netherlands (DNB). This means that Coinbase, or any Dutch VASP for that matter, must identify who the crypto transfer is going to and the purpose of the transaction.

When Coinbase applies the new rule to Dutch customers, they can check a box indicating that the transfer is sent to them. However, if the Coinbase customer from the Netherlands wants to send funds outside of Coinbase to another person, they must provide identity information.

Jeff Garzik expects KYC rule to extend beyond the Netherlands

Coinbase’s blog post to Dutch customers states that they must provide a “full name”, “purpose of transfer”, and “recipient’s full residential address”. If the person does not know the address, they should stop and get the information before continuing.

“We are required to collect additional information for all transactions where a customer in the Netherlands sends crypto from their Coinbase exchange account to an address that is not controlled by Coinbase,” the platform’s blog post explains. of crypto trading.

Although the new rule only affects customers in the Netherlands, there are fears that the regulatory approach could play out in other countries.

“Only the Netherlands for now, but expect that to grow,” Jeff Garzik, former Bitcoin Core developer said on Twitter. “Don’t blame Coinbase – they know it’s the antithesis of most crypto users and wouldn’t do it on purpose. Enforcement of travel rules will be a nasty battleground. LEA wants to monitor all parties in all transactions.

Garzik added:

Current advice from the crowd: always deposit and withdraw from your own wallet. This is a good idea for security, privacy, and accounting reasons, as well as for legal reasons.

Keywords in this story

Sanctions Act of 1977, AFM, Bitcoin, BTC, Coinbase, Coinbase Platform, Compliance, crypto exchange, crypto transfer, DNB, Jeff Garzik, Know Your Customer Policy, KYC, Netherlands, crypto netherlands, Customers countries- low, non-custodial exchange, non-custodial wallets, transfer out, regulation, regulations, rules and regulations, third-party wallet, travel rule, VASP

What do you think of the new Coinbase rules applied to residents of the Netherlands? Let us know what you think about this topic in the comments section below.


Jamie Redman

Jamie Redman is the News Manager at News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for News about disruptive protocols emerging today.

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Netherlands-Based Coinbase Customers Must Submit KYC Data When Transferring Crypto Off-Platform – Bitcoin Regulation News

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