As part of regulatory compliance, the crypto exchange firm, Bitstamp, now requires users on its platform to provide additional information about their source of income.
Accordingly, the company has informed users about the new exchange policy via email, requesting additional details from them.
The new development aligns with the official compliance the exchange chooses to go with, which requires users to submit personal details like occupation and income to update their information on the platform.
Bitstamp Releases Guidelines
In a bid to make the process seamless for users, the company has released official documents detailing how to update personal information, with sections for fiat-related incomes and various payslips and other vital documents.
Likewise, the section for crypto-related assets includes login information, deposits, withdrawals, agreements, and others. Legal documents to be submitted include nationality, tax residency, place of birth, source of funds, and others.
Before issuing the notice to the users, Bitstamp has also offered to reward every user that completed the exchange’s requirements; the reward is $25 for every successful submission.
The Withdrawal Option is Disabled for Users Who Failed to Comply
There is a reward for completing the registration. Still, the exchange has also taken another extreme step to prevent users from accessing their assets in the event of non-compliance with the directive. That said, users who failed to complete the mandatory details would have their accounts frozen, meaning they wouldn’t be able to withdraw their funds from the platform.
Hence, crypto and fiat withdrawals have been disabled for users in Europe who failed to provide details about the source of the wealth they deposited into their wallets.
Bitstamp has also requested that customers verify with accurate legal documents where the source of their crypto assets currently on the platform originated from and how they intend to use them.
This is required for the crypto assets bought on external crypto exchange platforms that have no business with Bitstamp.
However, the sudden changes in the exchange policy have elicited anger from users. Many in the community disclosed that the exchange failed to provide adequate notice before implementing the new guidelines.
One visibly frustrated user has revealed that the company has no right to change the rules when the community has already dumped its funds with the exchange. Another Bitstamp user on Reddit noted that the exchange should have given a deadline before its decision. Doing this is against the customer’s right, added the user.
In a bid to calm the nerves of the community members, a staff of Bitstamp revealed that the exchange is aware of the inconveniences caused by the action, but this is done to meet up with the demand of the regulatory body and not based on impulse.
The company added that this is the only way to continue providing services to its customers.
And it appears the only way for customers to continue using the Bitstamp platform is to comply with the new guidelines.