Coinbase Users in the Netherlands to Face Additional KYC Hurdles When Pulling Crypto off Platform

Coinbase's Dutch clientele will soon have to meet additional know-your-customer (KYC) requirements when transferring crypto to wallets held outside of the exchange.

Specifically, beginning June 27, Coinbase users in the Netherlands wishing to pull crypto from the exchange will have to share the recipient's full name and residential address as well as the purpose of the transfer. In certain circumstances, customers would be required to link a COINBASE (COIN) wallet to their main Coinbase account to verify that they control the wallet receiving crypto assets.

Coinbase told customers it is making these changes as "required by local regulations," an apparent reference to the Financial Action Task Force's (FATF) travel rule, which requires crypto service providers to exchange the personal information of the senders and receivers in order to tackle fraud and money laundering.

Currently, however, the travel rule is not mandated in the Netherlands, suggesting that Coinbase is attempting to pre-empt the possibility of this regulatory action.

The company declined to comment further when contacted by CoinDesk.

Coinbase has previously attempted to demonstrate a proactive approach to the travel rule compliance by founding the Travel Rule Universal Solution Technology (TRUST) alongside fellow exchanges. Its membership has grown to more than 30 firms and its jurisdictional footprint beyond the U.S. to Canada and Singapore with plans to extend to Europe.

Read more: European Parliament Proposes Expanding Travel Rule'to Every Single Crypto Transaction