Kraken mandates verification of self-custodial crypto wallets for UK users
Kraken, a prominent U.S.-based cryptocurrency exchange, has recently introduced a new requirement for its users in the United Kingdom (UK). In accordance with local regulations, Kraken is now asking its UK users to verify their self-custodial wallets or validate their wallet identities.
This development was brought to light by James Van Straten, an analyst at CryptoSlate, who shared the news in a post. Kraken Support later confirmed that they have indeed sent out requests to their UK users, although they did not specify the exact regulations that necessitated this action.
The email shared by Van Straten provides further details on Kraken’s request. Users are being asked to confirm their ownership or control of the self-custodial wallets that they use for cryptocurrency transactions. Additionally, they are required to provide information about any external self-custodial wallets they may have and the residential address associated with the owner of a crypto address.
The email also emphasizes that failure to comply with these requirements by February 23rd will result in a temporary ban from the exchange until the necessary information is provided.
Kraken’s decision to implement this verification process aligns with a broader trend among cryptocurrency exchanges. Bitstamp, a European exchange, adopted a similar approach earlier this year in response to new regulations from the Dutch government. There are also reports suggesting that Coinbase, a prominent U.S.-based exchange, is implementing requirements for users to provide recipient names, physical addresses, and the purpose of transfers.
It is clear that regulatory compliance is becoming increasingly important in the cryptocurrency industry. Exchanges are taking proactive measures to ensure that they are in line with the rules and regulations set by authorities.
