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Bitstamp to apply stricter KYC procedures to meet compliance

Monday 15 January 2018 10:25 CET | News

Bitstamp, a Slovenian crypto exchange, has started applying stricter KYC rules to its users.

Thus, customers are being forced to jump through hoops to meet an unprecedented level of compliance. The new procedure requests users to submit any financial documentation which can confirm the origin of their sent funds, such as savings account statement, salary pay slip, tax revenue statement, investment portfolio, property sale contract, inheritance or similar.

This move is a consequence of the fact that cryptocurrency exchanges are obligated to closely adhere to the law in their jurisdiction. Moreover, government agencies are inherently suspicious of Bitcoin, and regulators won’t hesitate to shut down exchanges that are found to have facilitated money laundering or conducted inadequate KYC procedures. 

However, in their quest to be seen compliant, some exchanges are asking intrusive and unwarranted questions of their customers, with Bitstamp the most egregious example, according to Bitcoin News.


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Keywords: BitStamp, KYC, Slovenia, onboarding, Bitcoin trading, Bitcoin, cryptocurrency, crypto, Bitcoin price, cryptocurrency exchange, online security, fraud prevention
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies