Bitfinex Announces Major Changes for UK Users in Compliance with New Regulations
In an unprecedented move, Bitfinex, a prominent cryptocurrency exchange, has unveiled significant operational modifications for its UK-based clientele in adherence to the nation’s evolving financial regulations. From January 10, 2024, Bitfinex will enforce measures that will deeply impact both individual and corporate clients, particularly existing individual customers and specific corporate clients who fail to meet certain exemption criteria stipulated by the UK’s Financial Promotions Order.
Regulatory Compliance and Customer Impact
These transformations follow Bitfinex’s appearance on the UK Financial Conduct Authority’s (FCA) warning list in October, cautioning investors against unauthorized firms. In a noticeable policy shift, Bitfinex has announced that new UK-based customers who established accounts post-November 1, 2023, will not be eligible for individual account verification. Existing customers stand to face restrictions on financial activities encompassing new deposits, the formulation of new contracts, or amplifying existing margin positions. However, these clients will retain the ability to manage, reduce, or close their current positions and withdraw funds.
The Corporate Clients’ Scenario
Corporate clients that fall into categories such as high-net-worth companies, unincorporated associations, or trusts and abide by UK legal definitions, will be exempt from these constraints and will continue to enjoy usual services from Bitfinex. The exchange has re-emphasized its commitment to regulatory compliance and has warned of potential requests for additional information from corporate UK residents during the verification process to ensure they meet the eligibility prerequisites for exemptions.
Bitfinex’s Stance
Bitfinex’s decision to amend its operational strategies for UK users stems from its dedication to align with financial regulations, including the withdrawal of product and service availability for certain UK customers. The exchange is working diligently to adapt to the UK’s regulatory requirements, and these changes will affect all existing individual and corporate customers who are UK residents and fail to comply with the Financial Promotions Order’s exemption clause.
