Regulations continue to make crypto exchanges difficult. After Binance was forced to leave the Ontario district, Coinbase is now implementing new rules to comply with the regulations of Canada, Japan and Singapore.
The new changes will take effect from April 1 and will only affect users in Canada, Singapore and Japan transferring digital assets from their Coinbase exchange wallet to a wallet outside the Coinbase platform. No changes have been made to the commercial transactions of the residents of these countries.
Wallet type and recipient information
Depending on the country, users are prompted for the recipient’s wallet type (whether custodial or non-custodial) and detailed information about the recipient. It goes without saying that these new changes have led to negative reactions from the community.
— Tradeboi Carti (@tradeboicarti16) March 25, 2022
Anyway, Coinbase stated that these changes were implied to comply with local regulations, which is why they are here to stay. Below you will find an overview of the specific requirements per country.
For Canadian users, the requirements only ask for the recipient’s personal information if the transaction meets both rules:
Sending crypto assets worth 1000 CAD or more The address that receives the crypto is operated by another exchange or financial entity.
If both conditions are met, Coinbase is required by law to obtain the full name and full residential address of the recipient, even if the users send it to themselves.
In the case of Singapore, the rules cover a much wider range of transactions. Under the new rules, as long as they send crypto outside Coinbase, users must provide the full name and full residential address of the recipient.
The rules apply even if the user sends money to themselves or transfers any amount, no matter how small.
As in Singapore, Japanese restrictions include all transactions made to an address controlled by another exchange or financial entity. Regardless of transaction amounts, all users trading assets to these destinations must provide the recipient’s wallet type and detailed address information.
The rules even apply to users who do not live in Japan but use a Coinbase Japan account.
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