Kraken, a U.S.-based cryptocurrency exchange, has started requiring additional information in the U.K. regarding transactions of self-custody wallets made to and from its accounts. Kraken sent an email to some of its U.K. customers, stating that if the information required was not provided, it could result in an account lock until the required data is delivered.
Kraken Starts Requiring Info on Self-Custody Crypto Wallet Ownership in the UK
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Kraken Demands Self-Custody Wallet Ownership Data in U.K.
Kraken, a leading U.S.-based cryptocurrency exchange, is ramping up its oversight of self-hosted wallet transactions. Kraken would be requiring to identify the data of the self-custody wallets that have transacted with addresses of the exchange in the U.K., according to an email made public on X by James Van Straten, lead analyst of Cryptoslate.
The email sent to an undisclosed customer states that Kraken is required by U.K. regulations to “maintain up-to-date information about our clients and their account activity regarding self-custody wallets,” which are the ones where only the owner has control of the private keys that provide access to the funds.
In the email, confirmed as legitimate, Kraken requires confirmation of the ownership of the self-custody wallet used to make transactions to and from the exchange wallets. In opposition, if the self-custody wallets used to transact are not under the control of the customer, Kraken requires the name and the residential addresses of the ones controlling these addresses.
The exchange added that if this information is not received by February 13, it would lock the referred account, effectively giving an ultimatum to this unidentified customer.
Van Straten commented this marked the start of a surveillance state in the U.K. Cris Carrascosa, a cryptocurrency-linked attorney, remarked on the application of similar regulation for all countries of the European Union (EU), to be applied starting next December 30.
This regulation, titled Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, and referred to as Transfer of Funds Regulation (TFR), establishes similar data requirements for transactions where at least one of the service providers facilitating these transactions is located in the EU.
What do you think about Kraken’s new self-custody wallet data requirements in the U.K.? Tell us in the comments section below.
