The Bitstamp bitcoin exchange has requested from users additional personal information, citing regulatory requirements.
In a letter reportedly in the possession of Cointelegraph, the company asked clients to disclose the provenance of fiat and digital assets deposited on the platform.
The exchange provided a provisional list of documents that could verify the source of funds. For cryptocurrencies, the list includes emails about deposits/withdrawals, wallet screenshots, credit-card statements, invoices and contracts with payments in digital assets.
The company now requires information on citizenship, place of birth, tax residence. It also asked users for details on annual income, net worth, intended activity on the platform, and projected deposits for the year.
“If you want to continue using our services, you need to update your account, as some information is outdated. As a thank-you, we will reward you with a $25 bonus after you meet the requirements”, the publication quotes the exchange’s message.
According to a Reddit post, Bitstamp blocked withdrawals for EU users who had not confirmed the provenance of their deposits.
In a post from a person who claimed to be a Bitstamp employee, the reply stated:
“We understand that we ask for a lot and this is a big inconvenience. However, please understand that we MUST satisfy the requirements of our regulators if we want to continue providing you with services.”
In January 2021, the exchange introduced KYC-procedures for clients from the Netherlands wishing to withdraw funds to external wallets. This was linked to the country’s new anti-money-laundering rules under EU standards and the FATF.