Netherlands-based cryptocurrency exchange says it has been “forced” to bring in extra verification measures due to requirements from the country’s central bank.
In a notice published Monday, the exchange said it will now ask users for extra information "such as the purpose with which you intend to purchase bitcoins and what kind of wallet you use."
It said it must obtain proof from customers they are the "legitimate owner" of a bitcoin address by uploading a screenshot of their wallets, or by signing a message with the bitcoin address.
Bitonic called the requirements "ineffective and disproportionate," saying it had asked multiple times that the central bank remove the requirement.
The central bank, De Nederlandsche Bank, is said to be applying the Netherland's Sanctions Act to cryptocurrency exchanges, seeking to ensure their users and transaction beneficiaries are not on a Dutch or European sanctions list.
"The Netherlands is currently the only country in the European Union where this far-reaching measure is demanded," the exchange said.
It further called for users to "formally object" to the central bank about extra requirements and the collection of the data.