Coinbase has notified its users in Singapore, Canada, and Japan about policy changes that it plans to implement due to legal requirements. The US-based crypto exchange will be asking senders of crypto assets to identify the names and addresses of the recipients starting April 1. Coinbase has justified its information-seeking mandate citing the laws of these nations. These changes will apply to those crypto senders who are sending crypto assets to non-Coinbase wallets.
For Canadian users, the rules will go live on April 4. Users sending crypto assets over CAD 1000 (roughly Rs. 61,000) or transferring digital assets from a Coinbase to another platform, will have to reveal the complete name and residential address of the recipient.
In Singapore, there is no cap on the amount concerned with the transaction. If a person is transferring from a Coinbase wallet to another one, even to their own self, they will have to provide the recipient’s full name and residential address.
Coinbase’s changes in Japan needs names and addresses of the crypto recipients using addresses managed by another exchange or financial entity. The rules apply even for users who do not reside in Japan but use a Coinbase Japan account.
The crypto community members are, as expected, not at all pleased with Coinbase’s decision and have slammed the exchange on social media.
All that is worked on in crypto(bitcoin) is destroyed by new laws
Coinbase to track crypto transactions off its exchange in Canada, Singapore and Japan.
This isn’t decentralization. Crypto must be above the control of countries.
— alizd (@alized88) March 27, 2022
Coinbase will lose a lot of users in Canada, Singapore and Japan.
— Cristian PM (@TheCristianPM) March 26, 2022
Countries around the world are working to define regulatory frameworks for the crypto sector.
The anonymity-retaining element of decentralised cryptocurrencies has emerged as a major reason for concern among policymakers.
India, for instance, has levied a one percent Tax Deduced at Source (TDS) for every crypto transaction in order to track asset movements.
In the days to come, analysts predict these laws will be the foundation of a more secure industry overall.
Cryptocurrency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14 billion (roughly Rs. 103,768 crore) over the course of the year, up from $7.8 billion (roughly Rs. 57,813 crore) in 2020, a report by Chainalysis said in January.
Money laundering in the crypto sector also grew from $6.6 billion (roughly Rs. 49,600 crore) to $8.6 billion (roughly Rs. 64,640 crore) between 2020 and 2021.
The criminal usage of cryptocurrencies can be expected to drop around the world as more governments make efforts to finetune the industry, the Chainalysis report added.