Bitfinex to Restrict Services for UK Customers
Bitfinex, a cryptocurrency exchange, has announced that it will make changes to its services for customers in the UK to comply with regulatory requirements. These changes will impact both individual and corporate customers who are UK residents and do not fall under the Financial Promotions Order exemption.
For existing UK customers, starting from January 10, they will no longer be able to make new deposits, enter into new contracts, or increase existing margin positions. However, they will still have the ability to reduce or close their positions and withdraw funds from the platform.
Exemptions for Certain Customers
Bitfinex has stated that certain corporate UK residents who meet specific criteria, such as being a high net worth company, unincorporated association, or trust, will not be affected by these changes. However, Bitfinex will no longer accept applications for verification from corporate UK residents unless they meet these exemption criteria.
The definition of a high net worth company is determined by UK legislation. If you are a corporate UK resident applying for verification, Bitfinex may request additional information to ensure you meet the eligibility requirements.
Bitfinex’s Placement on FCA’s Warning List
In October, Bitfinex was added to the Financial Conduct Authority’s (FCA) warning list of unauthorized firms. The FCA advised people to avoid dealing with Bitfinex as the exchange is not authorized by them and may be targeting individuals in the UK without proper authorization. Firms are not allowed to promote financial services in the country without the necessary approval.
Hot Take: Bitfinex Adapts to UK Regulations
Bitfinex is making strategic adjustments to its services for customers in the UK to align with regulatory requirements. Existing customers will face limitations on certain activities, but they will still have access to essential functions such as reducing positions and withdrawing funds. The exchange has also outlined exemptions for specific corporate customers who meet certain criteria. This move comes after Bitfinex was placed on the FCA’s warning list, highlighting the importance of adhering to regulatory guidelines in the financial industry.
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