Coinbase to track off-platform crypto transfers in Canada, Singapore, Japan

Citing compliance with local jurisdictions, crypto exchange Coinbase has announced it will soon be collecting additional information from users in Canada, Singapore and Japan.

Effective April 1, Coinbase users from Canada, Singapore, and Japan must provide additional information when sending cryptocurrencies to another (non-Coinbase) platform.

While Singaporean and Japanese investors must share additional recipient information for every single transaction outside the platform, Canadians sending less than $801 (1,000 CAD) will be exempt from this requirement.

Screenshot of Coinbase requesting recipient information from Canadian users. Source: Coinbase

As seen in the screenshot above, Canadian users must share the recipient’s full name and home address.

In addition, Canadian users who meet the above two conditions will be required by law to provide the recipient’s (self-)information even when transferring funds between their own crypto wallets.

On the other hand, both Japanese and Singaporean regulations require Coinbase to collect recipient information from local investors for every single transaction outside the platform with no minimum threshold.

Screenshot of Coinbase requesting recipient information from Singaporean users. Source: Coinbase

Like Canadian users, investors from Japan are required to disclose information including the name and full address of the recipient and the name of the crypto exchange processing the wallet.

Users in Singapore do not need to provide the recipient’s home address, just need the recipient’s name and country of residence. The lack of required information will prevent the user from sending cryptocurrencies from the Coinbase platform for the affected jurisdictions.

Coinbase users who no longer reside in these jurisdictions will need to update their country of registration to be exempt from the soon-to-be-implemented rule.

Related: Thailand SEC Bans Crypto Payments, Requests Disclosure of Exchange System Failures

For many jurisdictions, the road to mainstream crypto adoption has been paved by strict regulation under the guise of investor protection. As of April 2022, the Thailand Securities and Exchange Commission (SEC) announced a ban on crypto payments across the country.

In addition to this law, the SEC has also proposed a new rule that, if implemented, will require Thailand-based crypto firms — brokers, exchanges and dealers — to disclose information about service quality and IT usage.

As Cointelegraph reported, a joint investigation between the Thai SEC and the Bank of Thailand (BOT) concluded that:

†[Crypto payments] can affect the stability of the financial system and the overall economic system, including risks to people and businesses.”

Leave a Reply

Your email address will not be published.