Why do I need to verify my external wallet?

Coinmerce has implemented a new verification measure regarding external wallets.

As part of their registration with De Nederlandsche Bank (DNB), all crypto providers operating in the Netherlands must comply with the Sanctions Act. Part of this Sanctions Act is the screening of counterparties during transactions. This means that when you send cryptocurrency to an external wallet, you must first verify that you own or control it. You can find out more about this legal requirement here.

What does this mean for you as a customer?
For customers who store their cryptocurrency on Coinmerce and have never, and will never, send cryptocurrency to a wallet outside Coinmerce, nothing will change.
But if you are a customer sending cryptocurrency outside Coinmerce, a new process appears the next time you try to do so. The process aims to verify that you are the owner of the wallet you are trying to send to.

Different types of wallets There are two different types of external wallets you can verify:

Personal wallets:
A wallet whose private key you own, such as a hardware, software, mobile or web wallet. For example, Ledger, Trezor, Exodus, Blockchain.com.

Exchange wallets:
A wallet provided by an exchange or broker. With these wallets, you do not have access to the private key and your wallet is linked to your account. For example, Binance, KuCoin or Kraken.

How do I verify a wallet?

Verification goes as follows: login to your Coinmerce account, go to your account and click on 'withdrawal addresses'. Optionally, you can also verify an address when starting a withdrawal from your wallets. Verifying an exchange or personal wallet is done by performing the following verification method:

  • Uploading a screenshot of the address / wallet
    • The screenshot should show the full public address.
    • The screenshot should show the whole screen. In the case of a website, including the URL.
This verification method is possible with both exchange and personal wallets. Approval is done as soon as possible but may take longer outside office hours.

Important Once a wallet is verified, it is added to your address book. In the future, you can easily select and withdraw the cryptocurrencies without the need for verification.