In an effort to comply with local regulations, customers in Canada, Japan and Singapore who send digital assets to another financial institution or exchange will need to disclose specific information such as name and address. The official blog post stated,
“If you are in Canada, Singapore or Japan and you are sending digital assets outside of Coinbase, you may need to provide information on the type of wallet you are sending to and recipient information, depending on the country. “
Coinbase users to provide more details
Coinbase has revealed that the changes for Japan and Singapore will take effect on April 1st. Citing regulations set by the Monetary Authority of Singapore (MAS), the cryptocurrency exchange said that additional data must be acquired for all transactions where a Singapore user sends cryptocurrencies from their Coinbase exchange wallet to an external address. Requires the recipient’s name and country of residence.
Likewise, all cryptocurrency transfers to recipients outside of Japan must provide the recipient’s name, address and destination wallet. This is in line with the self-regulation rules formed by the Japan Cryptocurrency Trading Association (JVCEA).
Coinbase also said it “legally” requires the recipient’s name and address for Canadian users who send more than CAD 1,000 ($ 797) in cryptocurrencies to a financial entity or other “money service business”.
Users who send less than the above amount will be exempt from this new requirement. Referring to the Canadian FINTRAC rules as reasons for the change, Coinbase said the changes will take effect starting April 4.
Reactions
Citing investor protection, several countries have imposed stricter laws and reduced privacy to slow the growth of the crypto ecosystem. The latest development did not go well with many Coinbase customers receiving the request. Bankless co-host Ryan Sean Adams criticized the move and tweeted ,
“So it begins. Next in the menu… disable withdrawals on cryptographic wallets? The Canadian government wants to trap cryptocurrencies in their financial panopticon. Go bankless while you can.