The Netherlands has increased crypto security requesting much more information from its investors

[BrolySSJ 7899]

One of the main reasons why crypto is so popular is the sense of anonymity and not having to share your personal information online in order to obtain and use these currencies. However, with time and in an effort to regulate the currency, the concept of kyc with crypto began where users were required to upload proof of identification in the form of legal documentation. 

 

The Netherlands seems to have gone even beyond that point, with one of their exchanges, known as Bitonic, stating that they will perform much more rigorous verification procedures. In fact, this verification goes as far as to ask for additional details about you and even asks what is the reason you are buying bitcoin and what type of wallet you are storing this bitcoin in. Do you think that this verification process is too much? 

 

There is even more actually. There is a verification process where the user has to screenshot their wallet to prove that they are the owner of that wallet. 

 

Due to the extensive legal requirements that are being implemented by the Dutch, there are many exchanges that have migrated out of the country and have moved their office exchanges to the European countries. Do you think that this will be a severe hinderance to crypto development in the Netherlands? In my opinion, these measures seem to be quite invasive and extreme and could deter people from using or even considering the investment into crypto. 

 

For more information, i refer you to the following online article/link:

https://www.somagnews.com/dutch-requests-from-bitcoin-investors/

[hani20980 2706]

We have to stay away from trading platforms that require proof of identity

especially government platforms as these will be an excuse for them to steal

your money or impose taxes since they are able to know all your cryptocurrencies

It is true that some platforms require confirmation of identity as a security measure

against scammers and hackers but I see that such platforms exaggerate requesting

personal information as these platforms have offended Bitcoin

[Barbarellah 2225]

Learning about this new news we can say that the purpose of the creation of cryptocurrencies is being distorted, a reason that instead of benefiting the population in one way or another, it is harming them. I see this as a measure implemented by governments with the intention of continuing to maintain control of the money belonging to their citizens.

[zhoutong 2188]

Exchanges are code. They do not even need to have an office but they can migrate server and move to another country that will not be so strict. In any case it doesn't make any problem. Governments can try anything to create problems there are always ways to trade.

[estmerbol 257]

You already said at the beginning of your post, this is the main attraction of cryptos apart from their profitability are the anonymity with which investors can be maintained. Besides that our transactions can't be tracked in a country like mine that identifies me as getting some good amounts of money. I could be a victim of kidnapping or even extortion. That is why this will undoubtedly bring many inconveniences for the advancement of crypto in the Netherlands

[Whited35 15285]

On 11/19/2020 at 4:41 PM, BrolySSJ said:

Do you think that this verification process is too much? 

Not only this exchange our another exchange Txbit is also about to change the term of services. The reason is to prevent illegal money laundering and the wrong usage of crypto. Government can see everything regarding our credit history, income sources and funds. You may not have known yet, in NL any sort of gambling sites are prevented.

[pablomarwan 3082]

Yes, I agree with you. In the beginning, people used to admire digital currencies as they did not know you and did not put you in front of everyone’s attention. This is one of the answers in the cryptocurrency. But, yes, because it has become dependent on several suspicious businesses. It has become obligatory for clients to be bound in order to withdraw them and to place the necessary documents for that. For this reason, this restriction was set.

[Cryptomint 433]

In my view this is good because we all know that many people are using the cryptocurrencies for illegal purpose and in that way they will avoid.

[Henri1111 120]

I think there is no need for an office here but they can move the server and move to another country. In no case does it cause any problems. I think the government has a way of doing business and I can try anything to create problems, but I will do a little bit like you

[bogdanoff 3173]

I don't know if this approach that recently started by governments to ask for identity of crypto users will work. It is not that most users and investors in cryptocurrencies are criminals. There are some criminals that are how many, perhaps 0.0001% of the hundred million of cryptocurrency owners. Is this percentage enough to justify taking strict actions like those?

[cryptovlek 2597]

What i have read is there was a KYC enforced policy in all dutch exchanges. I don't know if this applies to all citizens of Netherlands that own crypto or use any kind of foreign exchanges and wallets. It is a bad sign whatsoever. After that it was france and then the USA that wants to make KYC as mandatory.

[percare 3192]

Quote

The Netherlands has increased crypto security

Are you sure this title fits the description of your post? According to what you said in the post the Netherlands asked for KYC from everyone in the country. How does this increases crypto security and what is crypto security that the government was concerned about? They just wanted to file everyone using crypto, is this re-enforcing the security of blockchains?

[Fixfin 2569]

Having very strict rules, I think it is not so important, and when any rules like these are implemented there should be given valid reasons and not baseless accusations of tax evasion or other criminal activities without giving any evidence, because usually this is what is happening, and the actions are taken by these governments without too much thinking.

[Quickbee 26]

It is good news that Netherlands has nearly accepted and recognized Cryptocurrency but with certain conditions. But insisting on KYC is going to put off a lot of investors and exchanges out of the Netherland Crypto market.