Cryptocurrency exchange Coinbase will soon require its customers in Canada, Japan and Singapore to disclose recipient information in case they are transferring digital assets from their Coinbase exchange wallet to a wallet off the Coinbase platform.
The exchange says the new rule is introduced to comply with local regulations in those countries.
“We adhere to the laws in the jurisdictions in which we operate,” a Coinbase spokesperson told CoinDesk. “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.”
Depending on the country, users will be asked to provide the recipient wallet type (whether it’s a custodial or non-custodial wallet) and detailed recipient information.
Canadian users sending more than CAD $1,000 in crypto to an address controlled by another exchange or financial entity (i.e., the recipient’s wallet is held by another exchange or an entity other than Coinbase) will need to provide the name and address of the recipient.
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.
And in Japan, all transfers of crypto assets to recipients outside of Japan must include the recipient’s name, address and destination wallet, according to the English translation of rules established by the Japan Cryptocurrency Trading Association (JVCEA).