Crypto exchange Kraken has recently announced that users from the U.K. are now required to verify their self-custodial wallets or validate wallet identities to comply with local regulations.

According to an analysis by James Van Straten, an analyst at CryptoSlate, the U.S.-based exchange Kraken has initiated this verification process for its U.K. users in response to regulatory requirements in the country.

Oh the UK is finished, surveillance state it is.
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Subsequently, Kraken Support has confirmed that requests have been sent out to users in the U.K. to fulfill these verification requirements. While the specific regulations prompting this action have not been disclosed, users are urged to comply with the requests.

Adding this here to show it’s a legitimate email
https://t.co/UYlriISrh6

The email shared by Van Straten provides details on the verification process, which includes confirming ownership or control of self-custodial wallets used for cryptocurrency transactions. Users are also required to provide information about external self-custodial wallets and the residential address associated with the owner of a crypto address.

Failure to meet these requirements by the specified deadline will lead to a temporary ban from the exchange until the necessary information is provided, as stated in the email.

Industry Trend:

Kraken’s latest move aligns with a broader trend in the cryptocurrency industry, where exchanges are increasingly requiring users to map out external crypto addresses they interact with. European exchange Bitstamp adopted a similar approach in early 2021, following new regulations from the Dutch government.

Yes, this is real. People in the Netherlands now have to KYC their withdraw addresses.
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Additionally, reports suggest that Coinbase, a public U.S.-based exchange, is also implementing similar requirements for users, including providing recipient names, physical addresses, and the purpose of transfers.

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