Coinbase's updated KYC procedures in Singapore require recipient and sender personal information for crypto transactions
Crypto users in Singapore are now facing stricter Know Your Customer (KYC) procedures after Coinbase implemented new requirements on Sept. 5. The changes align with anti-money laundering and counter-terrorism financing rules established by the Monetary Authority of Singapore (MAS).
Under the new mandate, Coinbase clients must provide additional details when depositing or withdrawing crypto from their accounts. Coinbase cautioned that transactions may fail if users do not furnish the necessary information.
Specifically, clients sending crypto from their Coinbase exchange balance to an external wallet, or vice versa, must now submit the following: recipient's wallet type, exchange name if not self-custody and recipient's full legal name.
Source: Coinbase
Those receiving external crypto deposits must supply the sender's full name and country of residence before accessing the funds.
Source: Coinbase
According to Coinbase Singapore CEO, Hassan Ahmed, Singapore represents a vital institutional market for the exchange in Asia, given sustained business interest and adoption of cryptocurrencies. Coinbase already offered institutional services under a special MAS exemption, but will now look to collaborate with local platforms and expand fiat capabilities after obtaining approval for Digital Payment Token services.
The move to increase compliance follows remarks by Coinbase co-founder and global CEO Brian Armstrong, who urged Singapore to take a more open stance towards retail cryptocurrency trading.
“Singapore wants to be a Web3 hub, and then simultaneously say: ’Oh, we’re not really going to allow retail trading or self-hosted wallets to be available,” said Armstrong at Singapore FinTech Festival 2022.
Singapore has repeatedly emphasized the high speculation and volatility risks after retail investors lost money. It also implemented a ban on cryptocurrency advertising in public areas and social media.
Coinbase's updated KYC procedures are part of a wider international expansion plan. After obtaining in-principle approval from MAS, Coinbase launched zero-fee local bank transfers for Singapore clients.
While the heightened regulations may inconvenience some traders, Singapore is taking a rigorous approach to cryptocurrency compliance. Coinbase's actions demonstrate that exchanges must carefully navigate increased oversight across multiple jurisdictions. However, many industry participants believe judicious regulation also represents a step towards mainstream adoption.
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