Coinbase to Require Recipient Information for Crypto Transfers From Users in Canada, Singapore and Japan

Cryptocurrency exchange Coinbase Global (COIN) will soon require its customers in Canada, Japan and Singapore who send cryptocurrency to another financial institution or exchange to provide the name, address and, in the case of Japan, the destination wallet of the recipient.

Coinbase has been sending notices to its customers in those countries that the changes will take effect in early April in order to comply with local regulations.

"We adhere to the laws in the jurisdictions in which we operate," a Coinbase spokesperson told CoinDesk via email, adding:

"While we will always advocate for what we think the laws should be, we must respect the laws that exist if we want to offer the suite of Coinbase services to customers in that country. I also want to make it clear that these changes, as outlined in our FAQ, only apply to Canada, Singapore, and Japan, where the laws require us to collect additional information. We are not applying this globally to customers."

The move does not seem to be going over well with Coinbase customers in those countries, who value the built-in pseudonymity of cryptocurrency transactions.

According to a FAQ provided by Coinbase, for Canadian users, sending more than CAD $1,000 ($798) in crypto to a financial entity or other crypto exchange will require the name and address of the recipient. This will take effect starting April 4, Coinbase said, citing Canada's FINTRAC rules as reasons for the change.

For users in Singapore, all crypto transfers from a Coinbase user's exchange wallet to an outside address will require the recipient's full name and country of residence. This will take effect on April 1, with Coinbase citing local Singaporean regulations.

And in Japan, all transfers of crypto assets to recipients outside of Japan must include the recipient's name, address and destination wallet, according to the English translation of rules established by the Japan Cryptocurrency Trading Association (JVCEA). This will take effect on April 1.

Read more: Crypto Heavyweights Coinbase, Fidelity and Robinhood Back US Anti-Money Laundering Group

UPDATE (March 26, 14:33 UTC): Adds comment from Coinbase.