Bitstamp to Reject Crypto Deposits Over €1,000 from Third-Party Wallets

Bitstamp has announced that it will automatically reject crypto deposits exceeding €1,000 from third-party self-custody wallets starting August 18. The rule targets wallets owned by someone other than the Bitstamp account holder and does not apply to deposits from exchanges. This change is reportedly in compliance with EU Regulation 2023/1113, which requires receiving crypto-asset service providers to assess whether their customers own or control self-hosted addresses for transfers exceeding €1,000.

The notice does not specify how the exchange will verify control of external addresses, but Bitstamp's API provides mechanisms such as ownership-status checks and Satoshi tests. However, it is unclear how these verified addresses will be treated under the new rule. Rejected deposits do not automatically return to the originator address, and customers must contact support to arrange for their return.

The change has sparked concern among some users, who worry that it may infringe on their right to self-custody their assets. However, Bitstamp maintains that the rule is necessary to comply with regulatory requirements and prevent potential risks associated with large transfers.