Kraken, a well-established cryptocurrency exchange, has recently imposed an additional stipulation on its British users.
James Van Straten recently shared a post indicating that Kraken is now requiring its UK users to validate the identities of their wallets or authenticate their self-custodial wallets, citing “regulations in the UK.”
Kraken Support has authorized delivery of the requests to users in the United Kingdom. The exchange did not, nevertheless, specify which regulations prompted this course of action.
Van Straten discloses the specifics of Kraken’s request in an email, which requires users to verify ownership or control of self-custodial wallets utilized in cryptocurrency transactions.
User information must also include the residential address of the crypto address proprietor and details regarding external self-custodial wallets.
Noncompliance with those conditions by February 23 will lead to a provisional suspension from the exchange, as stated in the email.
Kraken’s recent action is consistent with an industry-wide tendency for cryptocurrency exchanges to acquire information regarding the external crypto addresses that their clients exchange with.
Bitstamp, a European cryptocurrency exchange, implemented a comparable strategy in early 2021, attributing it to newly enforced Dutch government regulations.
According to additional reports, Coinbase, a prominent exchange based in the United States, may impose comparable user requirements, such as transferring funds with recipient names, physical addresses, and explanations of the transfers’ intentions.
Kraken has obtained operational authorization in Ireland and Spain, among other European nations. The exchange has reportedly obtained an e-money institution (EMI) license from the Central Bank of Ireland and registered as a virtual asset service provider (VASP) in Spain with success.
After obtaining VASP licenses in both Ireland and Italy, the organization made the transition. Kraken has additionally acquired the regulatory authorization required to conduct business in the United Kingdom.
Additionally, the exchange has encountered regulatory scrutiny in the United States as a result of a recent assault on the cryptocurrency sector.
A judge ordered Kraken to hand over a massive quantity of user information to the Internal Revenue Service (IRS) in July in order to facilitate an investigation into possible tax evasion.
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