Dutch Crypto Exchange Customers lament additional KYC specifications.

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Bitstamp traders based in the Netherlands now have far more regulatory hurdles to scale before they can withdraw their assets.

Crypto Exchange Platform Bitstamp is stated to require additional Consumer Awareness Compliance Measures for Dutch-based users.

 

According to a notice sent to Twitter user “Bitcoin Marcus,” — a Bitstamp user — the platform says account holders in the Netherlands have until the end of January to provide additional verification documents or risk their accounts being suspended.

As part of the additional KYC protocols, users must provide information about their net worth, nationality and proof of residence. Other documents demanded by Bitstamp include the source of funds — both for fiat and crypto.

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Indeed, the exchange is reportedly forcing Dutch-based customers to reveal sensitive personal information like their salaries and investment proceeds.

These KYC steps are in addition to an earlier order mandating users to whitelist their third-party withdrawal addresses by providing photographic proof of ownership of those wallets.

Responding to Bitcoin Marcus’s Twitter concerns, Bitstamp said, “Unfortunately, this procedure is required for our users from the Netherlands because of the new cryptocurrencies regulation introduced by the Dutch Government.”

For Bitcoin Marcus, however, Bitstamp is bending backward to please the Dutch authorities, particularly the central bank, adding that only exchanges headquartered in the Netherlands need these additional KYC enforcement measures.

Commenting on consumer concerns about KYC rules, Bitstamp Chief Technical Officer David Osojnik said to Cointelegraph:

“The solution we’ve implemented for verifying crypto withdrawal addresses is extremely straightforward and as unobtrusive as possible, while still satisfying the requirements set by the Dutch authorities. We do, however, realize that this situation may inconvenience our customers and encourage you to contact your local representatives or the DNB regarding the matter.”

The Dutch authorities issued new guidelines for crypto exchanges back in 2019, with measures coming into force in November 2020. As previously mentioned by Cointelegraph, Bitonic, a crypto trading firm in the Netherlands, described the new steps as “a nuisance.”

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Requiring users to submit personal and financial details can also pose a security risk. Centralized files containing such confidential data are typically aimed at cybercriminals.

Exchanges and other crypto companies have fallen victim to malicious cyber incursions that reveal user data. Hardware wallet maker Ledger is a perfect example, with almost 300,000 customers having their data stolen by hackers.

 

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