Coinbase Inc., a global crypto exchange based in the United States, has began requiring a specific demographic of its users to disclose recipient information as they send crypto to wallets outside of Coinbase’s product ecosystem.
For all of these “off-platform” usages, Coinbase says that the additional information that requires a mandatory collection will be gathered from all its users based in Canada, Singapore, and Japan. Coinbase cites compliance with local jurisdictions as the primary factor driving this new requirement, which does not apply to other Coinbase users from across the globe.
According to Coinbase, this new policy will be implemented starting April 2022, with users from Canada, Singapore, and Japan facing the requirements. In detail, users based in Singapore and Japan are required to share the additional recipient information for all off-platform transactions. The case is different though, with users from Canada, where users sending amounts less than $1,000 (CAD) are exempt from the rule. If they do go above this specific amount, users in Canada will be required to share the full name and residential address of their recipient. Additionally, if users based in Canada are to send to wallets that they also own or are registered to themselves, the requirements will be the same as the aforementioned.
According to a Japanese help page from Coinbase, the recipient’s name and full address are to be required, including the name of the crypto exchange processing or handling the wallet. By contrast, users based in Singapore will not be required to provide the recipient’s residential addres, with just the recipient’s name and country of residence required.
Notably, if a user based in these countries does not provide the required set of details, their accounts will be barred from sending out any crypto through the Coinbase platform. Moreover, if any Coinbase user moves their residence or address from these three jurisdictions, they will be required to update their registration in order to be exempt from the rule.
The Coinbase exchange has long been one of the most popular platforms for buying, selling, and storing digital assets like Bitcoin and Ethereum. As a result, this latest move from Coinbase will doubtlessly have a significant effect on the way that some users send their crypto off-platform. Coinbase’s tracking of off-platform transfers may become a cause for concern among some users who value their privacy. However, it is important to remember that Coinbase is a centralized exchange and as such is subject to regulation. It remains to be seen, however, how Coinbase’s new policy will be received by users in the long run.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/03/coinbase-begins-tracking-off-platform-transfers-for-some-users