Coinbase Will Require Additional Transaction Information from Canadian, Singaporean, and Japanese Users
Coinbase stated that it would begin requesting more information from consumers about cryptocurrency transactions between its exchange and other platforms in Canada, Singapore, and Japan.
Coinbase’s new rules, which take effect on April 1, will align with the legislation of the three specified countries, requiring users in those countries to submit extra information about the persons and/or companies with whom they interact.
“If you are a resident of Canada, Singapore, or Japan and are transferring digital assets outside of Coinbase, depending on the jurisdiction, you may be required to disclose information about the sort of wallet to which you are sending assets and information about the receiver,” the release said.
What data is required?
Residents of Canada will be required to supply the recipient’s name as well as their residential details. However, users residing in Singapore will be required to provide the receiver’s complete name and the nation in which they live.
However, for individuals residing in Japan, Coinbase will need senders to submit the name of the exchange, the recipient’s address, and the recipient’s wallet. The exception is that if the beneficiary is already a Coinbase user, the Coinbase user may not be required to give the extra information.
Canada mandates users to give extra information for purchases above 1,000 CAD, although citizens of Japan and Singapore do not face similar restrictions, since such data are needed for any off-platform transaction.
Additionally, the site encourages users who registered in one of the nations but no longer live in that country to alter their residency status on the platform to avoid being harmed.
How is the cryptocurrency community feeling?
With the crypto industry’s rapid expansion and popularity, many projected that the field would see more regulation; yet, none anticipated that authorities would begin to demand information of this type.
Finally, Crypto Twitter has not been amused by the current news, with some referring to the alterations as more official.
According to ZKTim, Canada’s new laws demonstrate the country’s “fast transformation into a considerably more authoritarian state” — referring to the punitive measures previously used to quell the truckers’ protest.
According to some users, the additional requirements will drive users away from centralised exchanges like as Coinbase and toward decentralised exchanges and self-custody wallets. Others claimed that this approach contradicts the premise that spawned the cryptocurrency business.