Coinbase announced that it will request users provide supplementary information about crypto transactions going from its exchange to other platforms in Canada, Singapore, and Japan.
Beginning April 1, Coinbase’s new requirements will fall in line with the regulations of the three named countries, where only users in those nations would have to provide additional information about individuals and/or entities they are transacting with.
“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,” the announcement said.
What information is required?
For those residents living in Canada, users will need to provide the receiver’s name as well as their residential information. For those living in Singapore, however, users will be expected to divulge the full name of the receiver and the country where they reside.
However, for those living in Japan, Coinbase will expect senders to provide the name of the exchange, address, and wallet of the person receiving the assets. The exception here is that a Coinbase user may not need to provide the additional information if the recipient is also a Coinbase user.
For transactions over 1,000 CAD, Canada requires users to provide the supplemental information, while residents in Japan and Singapore do not have such limitations, as those details are required on every off-platform transaction.
The platform also urges users who might have registered in any of the countries, but no longer reside there, to update their residence information on the platform to avoid being affected.
With the increasing growth and adoption of the crypto industry, many had predicted that the space would see more regulations, however, none envisaged that regulators could begin to push for information of this nature.
Ultimately, Crypto Twitter hasn’t taken too kindly to the recent news, with some describing the changes as more authoritative.
According to ZKTim, the new regulations in Canada show that the country is “rapidly changing into a far more authoritarian state” —alluding to the draconian measures the country has previously embraced to stop the trucker’s protest.
Some users believe that the new demands would push users away from centralized exchanges like Coinbase to decentralized exchanges and self custody wallets. Others opined that this move goes against the tenet that led to the creation of the crypto industry.
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