KYC with Bitstamp!

[MatTheCat]

WTF is this!?

Cheeky fucking bastards, seriously, this has just put me right off that fkn place.

"Dear Matthew,

We received your withdrawal request. As it met some of our volume and frequency thresholds we require that an additional KYC (know your customer) procedure is completed before we can proceed with the processing of your transfer.

We kindly ask you to answer the following KYC questionnaire:
1. How did you learn about Bitcoin?
2. The purpose of trading on Bitstamp? Please describe in as much detail as possible how you intend to use your trading account.
3. What is the origin of the so far deposited Bitcoins? If mining, please specify your hardware specifications and submit a receipt or an invoice for your mining equipment.
4. What are your future plans and activities planned on our exchange?
5. Do you plan more withdrawals in the future?
6. Which bank are you using? Please provide the complete address and SWIFT code.
7. Estimated amount that you would be depositing/withdrawing to/from your Bitstamp account per month (in USD and BTC)?
8. What is the source of the funds which you have so far deposited to your Bitstamp account? Please provide any financial documentation which can confirm how the funds sent to your Bitstamp account were acquired.

We kindly ask you to submit your answers and documents in a reply to this ticket. "

Best regards,
Blaž Šteblaj

[TTM]

Their questions are really stupid and make no sense. AML/KYC is good, but they have gone too far. Take out all your funds then find another exchange.

Just send them this thread. They are business, not FBI.

[MatTheCat]

2 days later. Still nothing. My request needs to be further processed apparently. (I never provided them with documentary evidence of where I got my money from, that is none of these fkn jokers' business)

Bottom line is that I am paying out into the same bank account as I used to put funds into Bitstamp in the first place. They have all my personal details, passport, utility bills etc, So what here is the problem at their end? This is worse hassles than I would get with any bank.

I say there is a policy of delaying tactics at Bitstamp when any largish sum of money is involved. Isn't this not how Gox started off? Delaying, restricting, suspending currency withdrawals, shortly before admitting they were bankrupt?

[Dr.Zaius]

Hello.

I am having a similar problem with Bitstamp. I was always wary of these exchanges and tended to stay away from them. After researching Bitstamp, I decided to give it a try. Buying and selling bitcoins was easy, the website loaded fast and support verified my account quite quickly. My first withdrawal for dollars(4digits), was processed quickly and I had funds within 5 days(international). So I decided to try a bit larger amount on March 16th. and support has messaged me with those exact questions. I answered all of them honestly, but they asked for some type of supporting financial document? I have never been asked for this by any traditional brokerage, nor bank. I am sure they are just trying to play it safe, but Mt. Gox also used a facade of AML/KYC compliance as an illusion to portray legitimacy. I have also asked them under what financial supervisory board/agency are they currently regulated under in UK or EU to collect this type of information. They said it was "internal procedures." I am a verified user with Bitstamp having both my passport and a copy of my bank statement, which I have used to withdraw.

My last contact with bitstamp support has been about 24hrs. I am sure they will take care of this as these small shops are usually swarmed with support requests. I have asked bitstamp to cancel my request, so I can simply withdraw via BTC and close my account. I am simply not going to put up with this type of nonsense out of a company that is not registered with any regulatory agency, yet is pretending to be at the forefront of regulation. We've seen this before.

I think what is most disturbing about these exchanges is how quick they are to accept deposits, but when it comes to withdraw suddenly there are all sorts of "compliance." Yet, no laws are ever cited by them. Why do they not ask this questionnaire during the account opening procedure? That is standard practice at most legitimate financial institutions when opening accounts.

Does bitstamp have anyone on this forum to PM to speed things up?

[MatTheCat]

Hello.

I am having a similar problem with Bitstamp. I was always wary of these exchanges and tended to stay away from them. After researching Bitstamp, I decided to give it a try. Buying and selling bitcoins was easy, the website loaded fast and support verified my account quite quickly. My first withdrawal for dollars(4digits), was processed quickly and I had funds within 5 days(international). So I decided to try a bit larger amount on March 16th. and support has messaged me with those exact questions. I answered all of them honestly, but they asked for some type of supporting financial document? I have never been asked for this by any traditional brokerage, nor bank. I am sure they are just trying to play it safe, but Mt. Gox also used a facade of AML/KYC compliance as an illusion to portray legitimacy. I have also asked them under what financial supervisory board/agency are they currently regulated under in UK or EU to collect this type of information. They said it was "internal procedures." I am a verified user with Bitstamp having both my passport and a copy of my bank statement, which I have used to withdraw.

My last contact with bitstamp support has been about 24hrs. I am sure they will take care of this as these small shops are usually swarmed with support requests. I have asked bitstamp to cancel my request, so I can simply withdraw via BTC and close my account. I am simply not going to put up with this type of nonsense out of a company that is not registered with any regulatory agency, yet is pretending to be at the forefront of regulation. We've seen this before.

I think what is most disturbing about these exchanges is how quick they are to accept deposits, but when it comes to withdraw suddenly there are all sorts of "compliance." Yet, no laws are ever cited by them. Why do they not ask this questionnaire during the account opening procedure? That is standard practice at most legitimate financial institutions when opening accounts.

Does bitstamp have anyone on this forum to PM to speed things up?

Yep. There is no good reason for any of this. Never come across it before with any kind of online account I have ever held. They have my passport scan, proof of home address and the bank account I am paying out to is the same one I have paid thousands in from. There should be no problems with this but it seems that with Bitstamp, there is for some reason.

[Dr.Zaius]

Just an update.

Bitstamp cancelled my dollar withdrawal request and I was able to withdrawal bitcoins. I am going to end up closing my account with them.

I understand compliance and transparency, but it works both ways. If exchanges are expecting customers to be compliant with government regulations, then they themselves should obtain real licenses and be subject to supervision by the relevant authorities. I am not willing to submit loads of private information to a bucket shop, we've already seen how that ends up. Exchanges should also ask these compliance questions and inform potential customers in clear bold writing during the application process, instead of holding withdrawals hostage later on.

Good luck  

[Sindelar1938]

Excellent points, drzaius

I concur completely. Arseholes.

[MatTheCat]

Withdrawal request confirmed by Bitstamp 72 hours after making request.

Not the horror story I was fearing in the end but they are surely shooting themselves in the foot with these totally unnecessary and senseless measures.....just making people feel nervous about using the place.

[juve4v]

WTF is this!?

Cheeky fucking bastards, seriously, this has just put me right off that fkn place.

"Dear Matthew,

We received your withdrawal request. As it met some of our volume and frequency thresholds we require that an additional KYC (know your customer) procedure is completed before we can proceed with the processing of your transfer.

We kindly ask you to answer the following KYC questionnaire:
1. How did you learn about Bitcoin?
2. The purpose of trading on Bitstamp? Please describe in as much detail as possible how you intend to use your trading account.
3. What is the origin of the so far deposited Bitcoins? If mining, please specify your hardware specifications and submit a receipt or an invoice for your mining equipment.
4. What are your future plans and activities planned on our exchange?
5. Do you plan more withdrawals in the future?
6. Which bank are you using? Please provide the complete address and SWIFT code.
7. Estimated amount that you would be depositing/withdrawing to/from your Bitstamp account per month (in USD and BTC)?
8. What is the source of the funds which you have so far deposited to your Bitstamp account? Please provide any financial documentation which can confirm how the funds sent to your Bitstamp account were acquired.

We kindly ask you to submit your answers and documents in a reply to this ticket. "

Best regards,
Blaž Šteblaj

This is outrageous! If they do this to me I would close my account next day! What another exchanger/trader  would  you use for EU?

[Bonio]

Just an update.

Bitstamp cancelled my dollar withdrawal request and I was able to withdrawal bitcoins. I am going to end up closing my account with them.

I understand compliance and transparency, but it works both ways. If exchanges are expecting customers to be compliant with government regulations, then they themselves should obtain real licenses and be subject to supervision by the relevant authorities. I am not willing to submit loads of private information to a bucket shop, we've already seen how that ends up. Exchanges should also ask these compliance questions and inform potential customers in clear bold writing during the application process, instead of holding withdrawals hostage later on.

Good luck  

I totally agree with this sentiment. Im not saying exchanges should be regulated but if they arent then neither should be the users.

[OrphanedGland]

I am having the same problem with Bitstamp.  I have made a sizable deposit which they have confirmed receiving, but will not give me access to it, and have started additional KYC even though I have already handed over personal details such as passport. 

I have now provided them evidence of where the money came from, although I don't think this should be required.  My funds still remain tied up, with support response times of longer than a day to each individual message.

Note that each additional reply made to a support message puts it at the end of the queue, so no proper dialogue with support is possible:

"Please note that if you reply to your own ticket this "bumps down" your ticket as our system is designed to give older tickets priority over the more recent ones.

Best regards,
Tomaž Bertoncelj"

The support team is severely understaffed, and no live chat support is in place.

I have now been waiting 4 days to get access to the funds since they were received by Bitstamp, even though I had already complied with KYC requirements.  I disagree with the level of questions asked, and the process should have started at the point the deposit is initiated, not received.  It smacks of a site that is simply trying to cover their own asses rather than serve their customers to the level deserved given the amount of money in question.

Let this be a warning to anyone considering using Bitstamp, I will personally be seeking out a more professional site, if one exists.

[V.Kodoff]

You can try to contact them via skype if they have one.
I guess searching it with their official email can give it try

[Hunyadi]

I have this problem too. Unbelievable stuff. I have deposited far more money in Bitstamp than I now try to withdrawal. They should know that after MtGox's funky business, bitcoin community is really sensitive to these kind of withdrawal problems.

[coiner8]

I am having the same problem with Bitstamp.  I have made a sizable deposit which they have confirmed receiving, but will not give me access to it, and have started additional KYC even though I have already handed over personal details such as passport. 

OrphanedGland and others, what type of amounts are we talking about here?  It would be good to give at least rough amounts that got flagged for additional KYC so that others will know if they are likely to face the same issues when they deposit.

[RayG]

Same problem here. I tried to withdraw $3500 and those clowns sent retarded questions instead of money. Next MtGox is inevitable.

[troiste]

Its called regulation folks, deal with it.

This is the so called regulations that governments want. If companies don't do this the exchanges can be shut down...

http://en.wikipedia.org/wiki/Know_your_customer

[Nemo1024]

Just got that message from them and provided the basic information, sans any attachments for question 6. That is strictly between myself and Norwegian tax authorities.

Strange that I get this now, after almost year of trading at Bitstamp and after both depositing and withdrawing far larger amounts multiple before.   This time it was just $1600 of deposit that triggered it, and I sent the money a week ago!

Wonder if I should consider moving to https://justcoin.no/

[Moedas :D igitais]

I guess its because they are based in the US, and the laws are getting stricter, therefore the extra KYC.
I personally use Kraken. Its seems more flexible on the verification process.
Up to 10K usd /month the verification is done solely online.
If you want more than that, then normal ID, proof of residence, etc.

Shame about their prices on the exchange tho... can't have it all...

[Brut]

Eventually when business reaches Bitstamp's scale, they have to deal with KYC policy. And those silly questions hadn't been created by Bitstamp, but by their processing bank or audit company. The question is if its time to switch to the other exchanges that are not as big as Bitstamp but could provide better service?

[Nemo1024]

I had to give in and provide a pay slip... 
But I'll be looking closer at https://justcoin.no/ just in case.