Crypto exchanges are still being challenged by regulations. 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 take effect April 1st. They will only be applicable to users in Canada and Japan who wish to transfer digital assets from Coinbase’s exchange wallet to a Coinbase-hosted wallet. These residents did not see any changes to their trading transactions.
Type of wallet and information about the recipient
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. It is not necessary to mention that the new changes caused negative reactions in the community.
— Tradeboi Carti (@tradeboicarti16) March 25, 2022
Coinbase said that these changes were not made. It is implied that you must comply with local regulationsThey are here to stay. Below is a breakdown listing the 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:
- Send crypto assets worth 1000CAD or more
- Another exchange or financial institution controls the address that receives the crypto.
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.
The rules for Singapore cover a wider range 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 regardless if the user sends funds to themselves or transacts any amount, regardless of how small.
Similar to Singapore’s restrictions, Japanese regulations also apply to transactions made to an address managed or controlled by another exchange or financial institution. No matter the amount of the transaction, all users who transact assets in these destinations must provide the recipient wallet type as well as detailed address information.
Even users who don’t reside in Japan, but have a Coinbase Japan Account, the rules still apply.
Source: Crypto Slate