Kraken, a popular crypto exchange based in the U.S., is now making it mandatory for users in the U.K. to verify their self-custodial wallets or validate their wallet identities in accordance with local regulations. This new requirement was highlighted in a recent post by James Van Straten, an analyst at CryptoSlate.
Although specific details about the regulations prompting this change were not disclosed by Kraken Support, they have confirmed that requests have been sent out to users in the U.K. The email shared by Van Straten outlines the steps users need to take, including confirming ownership or control of self-custodial wallets used for cryptocurrency transactions and providing information about external self-custodial wallets and residential addresses associated with crypto addresses.
Failure to comply with these requirements by Feb. 23 will result in a temporary ban from the exchange until the necessary information is provided, as stated in the email.
This move by Kraken is in line with a growing trend among crypto exchanges to track external crypto addresses used by their customers. Bitstamp, a European crypto exchange, adopted a similar approach in early 2021 due to new regulations from the Dutch government. Reports also suggest that Coinbase, a prominent U.S.-based exchange, is implementing requirements for users to provide recipient names, physical addresses, and the purpose of transfers.
In related news, MEXC is reportedly cracking down on users from China who have not completed their KYC requirements. Stay updated by following us on Google News.