Posted in: Older News
Published:
November 10, 2014 11:47 PM UTC

Bitstamp to Stamp Out Unverified Customers’ Accounts in Three Days

On Monday, bitcoin exchange Bitstamp issued a reminder to customers that they have three days to verify their accounts. Following that deadline, the company will close the accounts, and government regulatory agencies can seize any remaining funds. Also Read: Bitstamp Provides Proof Of Bitcoin Solvency…

Customers who do not verify their Bitstamp accounts by November 13 could have their funds seized by regulatory authorities.

On Monday, bitcoin exchange Bitstamp issued a reminder to customers that they have three days to verify their accounts. Following that deadline, the company will close the accounts, and government regulatory agencies can seize any remaining funds.

Also Read: Bitstamp Provides Proof Of Bitcoin Solvency As First Step Towards A Real Financial Audit

Unverified Bitstamp Accounts Have Three Days to Comply

Nearly four weeks ago, Bitstamp announced customers had until November 13 to verify their accounts or face termination and asset seizure. Bitstamp had tightened their verification policy in 2013, but many users chose not to comply and Bitstamp did not pursue any action against them. However, Bitstamp changed their tune on October 17. As Caleb Chen reported, Bitstamp attests that unverified accounts violate the bitcoin exchange’s “Know Your Customer” and “Anti-Money Laundering” policies.

Failure to [verify accounts] constitutes a breach of our Agreement and failure to remedy that breach. This will automatically result in the following: all unverified accounts holding a balance will be terminated, access rights will be removed, and the holders of these accounts will no longer be considered Bitstamp customers.

Government May Seize Unverified Funds

Moreover, once Bitstamp terminates customer accounts those customers will not be able to reclaim their funds. Rather, since “holders of these accounts will no longer be considered Bitstamp customers,” the company will turn the funds over to government regulatory agencies.

Any remaining balances will be subject to immediate seizure by and forfeiture to regulatory authorities.

Bitstamp not Backing Down from Promise to Stamp Out Unverified Customers

Despite warnings, some customers have still neglected to verify their accounts. Perhaps they were just lazy, or maybe they believed Bitstamp would back down from their threat. However, on Monday the company issued a reminder about the deadline through its social media accounts.

Bitstamp clearly desires to achieve the regulatory compliance necessary to avoid problems with the government. While this is their prerogative, it will surely dismay the multitude of bitcoin community members who desire to trade bitcoins with anonymity and operate outside of government-approved institutions. Current customers now have three days to submit to Bitstamp’s compliance policy or find a new outlet to buy and sell bitcoins.

What do you think? Comment below!

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Disclosure: The author is paid and holds investments in bitcoin.

Images from  Shutterstock.

Last modified: January 8, 2020 3:18 PM UTC

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

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