Kraken Inquires UK Users Regarding Self-Custodial Wallet Activity, Cites Local Regulations
Kraken, a prominent cryptocurrency exchange, has recently introduced a new requirement for its users in the United Kingdom.
According to a recent post shared by James Van Straten, Kraken is now mandating that its UK users verify their self-custodial wallets or validate their wallet identities, citing “regulations in the UK.”
Kraken Support has confirmed that it has sent the requests to UK users.
However, the exchange did not disclose the specific regulations prompting this action.
An email shared by Van Straten outlines the details of Kraken’s request, which includes users being asked to confirm ownership or control of self-custodial wallets used for cryptocurrency transactions.
Additionally, users are required to provide information about external self-custodial wallets and the residential address associated with the owner of a crypto address.
Oh the UK is finished, surveillance state it is. pic.twitter.com/afIamE970S
— James Van Straten (@jvs_btc) February 13, 2024
The email warns that failure to comply with these requirements by February 23 will result in a temporary ban from the exchange.
Kraken’s recent move aligns with a broader industry trend among cryptocurrency exchanges to gain visibility into the external crypto addresses with which their customers interact.
Bitstamp, a European crypto exchange, adopted a similar approach earlier in 2021, citing new regulations imposed by the Dutch government.
There are also reports suggesting that Coinbase, a prominent US-based exchange, is implementing similar requirements for users, including the provision of recipient names, physical addresses, and the purpose of transfers.
Kraken has received authorization to operate in several European countries, including Spain and Ireland.
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