Certain users will have to provide additional information when sending cryptocurrencies, said exchange giant Coinbase.
In a bid to comply with local regulations, customers in Canada, Japan, and Singapore sending digital assets to another financial institution or exchange will be required to disclose specific information such as the name, address. The official blog post stated,
“If you’re located in Canada, Singapore, or Japan and are sending digital assets outside of Coinbase, you may need to provide information about the type of wallet you’re sending assets to and information about the recipient, depending on the country.”
Coinbase Users to Furnish More Details
Coinbase revealed that the changes for Japan and Singapore will come into effect starting April 1st. Citing regulations established by the Monetary Authority of Singapore (MAS), the crypto exchange said it is required to acquire additional data for all transactions where a Singaporean user sends crypto from their Coinbase exchange wallet to an outside address. It requires the recipient’s name and country of residence.
Similarly, all crypto transfers to recipients outside of Japan must provide the name, address as well as destination wallet of the latter. This is in line with the self-regulatory rules formed by the Japan Cryptocurrency Trading Association (JVCEA).
Coinbase also said it “legally” requires the name and address of the recipient for Canadian users sending more than CAD 1,000 ($797) in crypto to a financial entity or other “money service business.”
Users sending less than the aforestated amount will be exempted from this new requirement. Referring to Canada’s FINTRAC rules as reasons for the change, Coinbase said the changes will take effect starting April 4th.
Citing investor protection, several countries have imposed stricter laws in place and curtailed privacy to slow the growth of the crypto ecosystem. The latest development did not sit well with many Coinbase customers who received the request. Bankless co-host Ryan Sean Adams criticized the move and tweeted,
“So it begins. Next on the menu…disabling withdrawals to crypto wallets? The Canadian government wants to trap crypto into their financial panopticon. Go bankless while you can.”