Crypto exchange Bitstamp has decided to proceed with implementing regulations, requiring its users to offer information about their wealth and its original source.
The change in exchange policy was updated through emails sent by the firm to its users on Wednesday, asking them to submit additional information on the trading platform.
One Bistmap user revealed the details of the email which are given below:
We work closely with our regulatory partners to ensure we continue to be your trusted exchange. Towards this, we need your account information to be updated to provide you with the latest products and crypto.
In order to comply with the regulation, Bitstamp asked its users to provide updated information regarding the source of crypto assets stored on the platform.
In addition, the crypto exchange has also released various other documents as an example of the documentation for the fiat-related sources of wealth of deposited funds, including receipts of salary and pensions, mining payslips, inheritance documents, gifts, payslips for savings, and others.
Withdrawals, agreements, deposits, login info, hand-written, screenshots are sources that are related to crypto.
Further, the platform also urges its users to submit their legal docs such as nationality, place of birth, and tax residency. Besides, also inquired them about net worth and annual income, intended activities on the platform, annual deposits estimation, and sources as assets.
The exchange also announced rewards for its users on March 30 for submitting the required information, as per the latest notice issued by Bitstamp.
The exchange informed the users saying that for continuing their services, they need to update their account, further notifying them of the reward, “As a “Thank You!” we will reward you with a $25 bonus once you have completed your account info.”
Bitstamp Disables Accounts Of European customers Who Didn’t Act In Accordance With Regulations
The users who refuse to act in compliance with the rules run the risk of getting their accounts frozen, not allowing users to withdraw the funds stored in Bitstamp. Earlier, the exchange has done with European customers who did not update the information about the origin of their wealth, disabling all kinds of withdrawals (crypto and fiat) for them.
The crypto exchange now urges its other customers to provide legal documents regarding the digital assets being operated on the platform. It is also important to note that only the details regarding the crypto assets bought on the external crypto exchanges are needed by the platform.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/19/bitstamp-asks-users-to-submit-additional-information-including-legal-docs-origin-of-their-wealth/