Bitcoin exchanges open questions to verify Bitcoin users and require them to provide reasonable explanations

Golden Finance News—— The "anti-money laundering" campaign has never stopped. Not only government agencies, but also some Bitcoin exchanges have implemented similar anti-money laundering verification questions. If you cannot provide a reasonable answer, your deposit will not be accepted.

Some Bitcoin exchanges have implemented similar anti-money laundering verification issues. Image source: Golden Finance

"Anti-money laundering" has also always been a concern for financial institutions in various countries. The banking system requires their partners to conduct a thorough review of all customers before processing funds.

Recently, media reported that Bitstamp, one of the largest Bitcoin exchanges in Europe, has also made major changes. Bitstamp will now ask detailed questions about the source and purpose of funds for suspicious funds transferred into its accounts.

According to regulations, Bitcoin companies need to thoroughly review the nature of all funds flowing into and out of the platform, but most Bitcoin holders do not like to answer these "bottom-check" questions.

——However, it remains to be seen whether the opening of problematic verification will have a negative impact on the Bitstamp Bitcoin exchange’s position in Europe.

Bitstamp may ask some questions that general financial institutions would ask. Image source: Golden Finance

——Based on the verification questions, the Bitstamp exchange may ask users some questions, which are basically the questions that general financial institutions would ask.

For example, Bitstamp wants to know their users’ current occupations, and they also want to determine the purpose of suspicious trading accounts, which may include trading purposes, buying Bitcoin, converting cryptocurrencies, etc. Although some people feel that this is not the exchange’s business, it is not excessive to ask these questions.

- In addition, Bitstamp wants to know the source of the funds transferred into the account, and having financial documents to prove it is of course very helpful. Their goal is also to find out the purpose and destination of Bitcoin withdrawals, but this further reduces the privacy of Bitcoin. However, these popular cryptocurrencies do not have privacy features. Therefore, such questions once again ensure that no one can use their money for illegal activities.

Currently, Bitcoin exchanges need to comply with strict anti-money laundering requirements, and the questions asked are just to follow the rules. For now, Bitstamp seems to be satisfied with most answers, as long as Bitcoin users can provide reasonable explanations, but refusing to answer questions may cause inconvenience.