Crypto exchange platform Bitstamp is reportedly demanding additional Know Your Customer compliance steps for Dutch-based users.

According to a find sent to Twitter user "Bitcoin Marcus," — a Bitstamp user — the platform says business relationship holders in the Netherlands have until the end of January to provide additional verification documents or risk their accounts being suspended.

As function of the additional KYC protocols, users must provide data nearly their net worth, nationality and proof of residence. Other documents demanded by Bitstamp include the source of funds — both for fiat and crypto.

Indeed, the substitution is reportedly forcing Dutch-based customers to reveal sensitive personal information like their salaries and investment proceeds.

These KYC steps are in addition to an earlier order mandating users to whitelist their third-party withdrawal addresses by providing photographic proof of buying of those wallets.

Responding to Bitcoin Marcus's complaints on Twitter, Bitstamp remarked, "Unfortunately, this process is required for our users from holland due to new regulation regarding cryptocurrencies introduced by the Dutch government."

For Bitcoin Marcus, withal, Bitstamp is bending over astern to satisfy Dutch government, especially the cardinal banking company, adding that only exchanges headquartered in holland crave these boosted KYC compliance steps.

Commenting on customer complaints regarding the KYC policies, Bitstamp main technology officer David Osojnik told Cointelegraph:

"The solution we've implemented for verifying crypto withdrawal addresses is extremely straightforward and equally unobtrusive as possible, while still satisfying the requirements set by the Dutch government. We do, notwithstanding, realize that this situation may inconvenience our customers and encourage you to contact your local representatives or the DNB regarding the matter."

Dutch government issued new requirements for crypto exchanges back in 2019 with the measures coming into result in November 2020. Every bit previously reported by Cointelegraph, Bitonic, a crypto substitution in the Netherlands, described the new measures equally "a nuisance."

Requiring users to hand over personal and financial information may also pose a security risk. Centralized databases holding such sensitive data are ordinarily a target for cybercriminals.

Exchanges and other crypto businesses take fallen victim to malicious cyber-incursions exposing user data. Hardware wallet maker Ledger is a prime instance with almost 300,000 users having their details compromised by hackers.