Kraken Implements New Verification Measures for UK Users’ Self-Custodial Wallets

    Kraken, a leading cryptocurrency exchange, introduces wallet verification for UK users in response to local regulations. Users must comply by February 23, 2024, to avoid account restrictions. Explore the broader trend of exchanges enforcing address verification in the crypto industry.

    • UK Users Mandated: Kraken now requires UK users to verify self-custodial wallets.
    • Regulatory Compliance: The move is in response to regulations in the UK concerning self-custody wallets.
    • Verification Process: Users must confirm ownership or control, providing details by February 23, 2024.
    • Restrictions Imposed: Failure to comply leads to account restrictions until verification information is provided.
    • Industry Trend: Cryptocurrency exchanges, including Bitstamp, have been increasingly enforcing address verification.

    Kraken, a prominent cryptocurrency exchange, has instituted new verification measures for its users in the United Kingdom. The move comes as part of the exchange’s response to regulatory requirements in the UK related to self-custodial wallets.

    Verification emails sent to users emphasized the need to maintain up-to-date information on clients and their account activities, particularly concerning self-custodial wallets. While specific regulations triggering this action were not disclosed, Kraken Support later confirmed the initiation of wallet verification requests for its UK-based users.

    Users are required to confirm ownership or control of self-custodial wallets used for cryptocurrency transactions. In case users are not the owners or controllers, they must provide detailed information about the responsible party and their residential address. Failure to respond by February 23, 2024, will result in account restrictions until the necessary verification information is provided.

    This move aligns with a broader trend observed in the cryptocurrency industry, where exchanges are increasingly demanding users to associate external crypto addresses in compliance with evolving regulations. Similar strategies were adopted by exchanges like Bitstamp, citing regulatory updates.

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