Coinbase to track recipient information for crypto transfers in Canada, Singapore and Japan

Starting in early April, crypto exchange Coinbase Global will require its customers in Canada, Japan and Singapore who send cryptocurrency to non-Coinbase wallets 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.

“If you’re located in Canada, Singapore, or Japan and are sending digital assets outside of Coinbase, you may need to provide information about the type of wallet you’re sending assets to and information about the recipient, depending on the country,” the official blog post stated.

“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.”

According to a FAQ provided by Coinbase, for Canadian users, sending more than CAD1,000 ($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.

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.

The latest development did not sit well with many Coinbase customers who received the request.

Bankless co-host Ryan Sean Adams criticized the move and tweeted:

“So it begins. Next on the menu… disabling withdrawals to crypto wallets? The Canadian government wants to trap crypto into their financial panopticon. Go bankless while you can.”