Regulations continue to give crypto exchanges a hard time. After Binance was coerced to leave the Ontario district, Coinbase now is implementing new rules to comply with Canada, Japan, and Singapore’s regulations.
The new changes will be effective starting on April 1st, and will only affect users in Canada, Singapore, and Japan who are transferring digital assets from their Coinbase exchange wallet to a wallet off the Coinbase platform. No changes were made to the trading transactions of the residents of these countries.
Wallet type and recipient information
Depending on the country, users will be asked to provide the recipient wallet type (whether it’s a custodial or non-custodial wallet) and detailed recipient information. There is no need to point out that these new changes aroused negative reactions from the community.
What the fuck is this? Hey @coinbase is this real? Is it over? #btc #eth pic.twitter.com/frw0n3T2XG
— Tradeboi Carti (@tradeboicarti16) March 25, 2022
Regardless, Coinbase stated that these changes were implied to comply with local regulations, and therefore they are here to stay. Below you can find a breakdown of specific requirements for each country.
For Canadian users, the requirements only ask for the recipient’s personal information if the transaction meets both of these rules:
- Sending crypto assets worth 1000 CAD or more
- The address receiving the crypto is controlled by another exchange or financial entity.
If both these conditions are met, then Coinbase is legally required to obtain the recipient’s full name and full residential address, even though the users are sending it to themselves.
In the case of Singapore, the rules include a much broader array of transactions. According to the new rules, as long as the users send crypto outside of Coinbase, they are required to provide the recipient’s full name and full residential address.
The rules apply even if the user is sending funds to themselves, or transacting any amount regardless of how small.
Similar to Singapore, Japanese restrictions include all transactions made to an address managed by another exchange or financial entity. Regardless of the transaction amounts, all users who transact assets to these destinations are required to provide the recipient wallet type and detailed address information.
The rules apply even for users who do not reside in Japan but use a Coinbase Japan account.
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Author: Zeynep Geylan