Coinbase has announced that it will ask users to provide additional information about outgoing cryptocurrency transactions to other platforms in Canada, Singapore and Japan.
Coinbase will request additional information from users in these countries
Coinbase, one of the largest cryptocurrency exchanges in the world, will introduce new requirements from April 1. The new requirements of Coinbase will comply only with the rules of the three countries, where users in these countries must provide additional information about the persons and/or organizations with which they make transactions.
The following statements were included in the statement made by Coinbase;
If you are located in Canada, Singapore or Japan and you are sending digital assets outside of Coinbase, depending on the country, you may need to provide information about the type of wallet to which you are sending assets and the recipient.
What information is required?
For residents of Canada, users will need to specify the recipient’s name along with information about their place of residence. But for Singapore residents, users are expected to disclose the recipient’s full name and country of residence.
However, for those who live in Japan, Coinbase expects the senders to provide the exchange name, address and wallet of the person receiving the assets. The exception is that a Coinbase user may not be required to provide additional information if the recipient is also a Coinbase user.
For transactions worth more than 1,000 Canadian dollars, Canada requires users to provide additional information, while residents of Japan and Singapore do not have such restrictions, since this data is required for every transaction outside the platform.
The platform also encourages users who may be registered in any country but no longer reside there to update their residence information on the platform to avoid exposure.
How does the crypto community feel?
With the growing growth and adoption of the cryptocurrency industry, many predicted that there would be more regulation in this area, but no one predicted that regulators would begin to disseminate information of this kind.
According to ZKTim, the new rules in Canada show that the country is “rapidly turning into a much more authoritarian state,” implying the brutal measures the country has previously taken to stop the truck driver’s protest.
Some users believe that the new requests will push users away from centralized exchanges, such as Coinbase, to decentralized exchanges and wallets with self-storage. Others said that this step goes against the principle that led to the development of the cryptocurrency industry.