Crypto Community Reacts To Coinbase Requiring Recipient Information For Transfers NowMarch 26, 2022 2:07 pm
The crypto community has reacted extremely negatively to Coinbase’s new rules which require users to disclose recipient information for all transfers in countries like Canada, Japan, and Singapore.
Essentially, information that would have to be provided to the exchange and possibly the government would be details like name, address, and crypto wallet address.
After Coinbase sent this notice to its customer base, the change was met with a lot of criticism as many thought that this defeated the purpose of what crypto was designed to do which is to allow for payment transactions that were anonymous and controlled by the users.
As a result, many see this as over-regulation that will likely limit crypto growth if it gets aggressively enforced as crypto was specifically designed with anonymity in mind.
Wait, then what’s the point of crypto/blockchain, being outside of fin.system and all.. I may be better of sending fiat money 😂 crypto freaks may not realise but the market is getting extremely regulated. #Coinbase #fail pic.twitter.com/PQ9Z5kQyNs
— Eurasianomics (@eurasianomics) March 25, 2022
Coinbase didn’t immediately respond to requests for additional comment on the moves, but confirmed that they were taking place.
The move does not seem to be going over well with Coinbase customers in those countries, who value the anonymity of transactions using cryptocurrency.
According to a FAQ provided by Coinbase, for Canadian users, sending more than CAD $1000 ($798) in crypto to a financial entity or other crypto exchange will require the name and address of the recipient.
This will take effect starting April 4, Coinbase said, citing Canada’s FINTRAC rules as reasons for the change.
For users in Singapore, all crypto transfers from a Coinbase user’s exchange wallet to an outside address will require the recipient’s full name and country of residence.
This will take effect on April 1, with Coinbase citing local Singaporean regulations.
A spokesperson has stated that the exchange is adhering with the laws and regulations of the jurisdictions that the company is operating in.
With that being said, crypto users in the countries where these laws have taken effect are definitely not welcoming the recent changes with many saying that they would rather just move to a country where the regulations were favorable to them.
The SEC in Thailand has also recently started banning all crypto payments within the country indicating that there are still regulatory roadblocks that will slow mainstream adoption depending on where you are in the world.
The SEC in Thailand seems to present the same issues that crypto users face with the SEC in the United States where government agencies are interfering with market dynamics and slowing growth.
In an attempt to comply with local jurisdictions, Coinbase users in certain countries will have to provide additional information when transferring cryptocurrencies to non-Coinbase wallets. https://t.co/2OyNRT5W0r
— Cointelegraph (@Cointelegraph) March 26, 2022
For many jurisdictions, the road to mainstream crypto adoption is paved by stringent regulations under the pretext of investor protection. Starting April 2022, the Thailand Securities and Exchange Commission (SEC) announced a ban on crypto payments throughout the country.
Complementing this law, the SEC also proposed a new rule, which if implemented, will require Thai-based crypto businesses — brokers, exchanges and dealers — to disclose service quality and IT usage information.
As Cointelegraph reported, a joint study between the Thai SEC and Bank of Thailand (BOT) concluded that:
“[Crypto payments] may affect the stability of the financial system and overall economic system including risks to people and businesses.”
Still, as users have control over wallets and blockchain is mainly a p2p network, such regulatory actions may be hard to enforce and history has shown that growth has always continued despite the pushback.
— AlertsAndNews (@AlertsAndNews) March 26, 2022
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