In 2020 the Netherlands approved the implementation for the European fifth Anti-Money Laundering Directive (AMLD5). Crypto providers operating in or from the Netherlands also needed to apply for registration with the Dutch Central Bank (DNB). Besides the AMLD5 implementation DNB required from crypto providers to implement additional measures, which is the same wallet verification that Coinbase now requires.
Bitonic (a dutch crypto broker/provider) filed a lawsuit against DNB regarding the additional wallet verification requirement, which was not part of AMLD5. DNB formally acknowledged the complaints from Bitonic and revoked the wallet verification. I'm not sure but I believe (until now) it has only be revoked for Bitonic.