Coinbase has announced that by early April users in Canada, Singapore and Japan will be required to provide information on any crypto sent outside of their accounts.
This change is being made to match changing regulations in many different countries.
Cryptocurrency enthusiasts have been upset at these changes as it reduces privacy. These changes would mean any non-custodial wallet you wish to send funds to from your Coinbase account would need to be verified.
The information to be included in each transaction will include the name, address and the destination wallet of the recipient.
Coinbase has already begun notifying customers about the upcoming requirements. The changes will be made in Japan and Singapore on April 1.
These changes require all transfers out of their account to include recipient information. The change to accounts in Canada will begin on April 4. Canada’s regulations require information for any accounts which are transferred over CAD $1000.
There has been harsh criticism to the changes in regard to consumer privacy but Coinbase said: “While we will always advocate for what we think the laws should be, we must respect the laws that exist if we want to offer the suite of Coinbase services to customers in that country. I also want to make it clear that these changes, as outlined in our FAQ, only apply to Canada, Singapore, and Japan, where the laws require us to collect additional information. We are not applying this globally to customers.”
Coinbase customers in these countries have taken to social media to post their complaints about the upcoming requirements. Many digital currency enthusiasts value the pseudonymity which comes from cryptocurrency transactions. Many believe this step is one that will push cryptocurrency into a highly regulated industry.
So far only Coinbase has added this requirement for their users while other exchanges have not made a comment about the regulation changes.
They could potentially also need to adopt these requirements as many other countries have also looked into adding this feature as they try to uncover the names behind non-custodial wallets.
The push for these requirements by many governments stems from the concern about tax evasion and money laundering.