Bitfinex Restructures UK Operations, Making Limited Exceptions
Cryptocurrency exchange Bitfinex has made changes to its operations in the United Kingdom. Starting from this week, customers in the UK will no longer be able to increase their cryptocurrency portfolios on the exchange. They will only be permitted to reduce or withdraw their holdings. Bitfinex clarified that this decision excludes corporate UK residents, except for those who meet specific criteria such as being a high-net-worth company, unincorporated association or trust. Existing customers will still have the option to reduce or close their positions and withdraw funds from the exchange.
UK FCA Crypto Regulations Prompt Brief Scale-Backs
Bitfinex is not the only crypto firm halting service access for UK individuals recently. The changes are in response to new rules announced by the UK’s Financial Conduct Authority (FCA) regarding the marketing of crypto assets. These rules are set to take effect this year. Another example is Revolut Business, which stopped allowing UK customers to purchase crypto through its platform on January 3. However, business customers can still hold and sell their current crypto holdings. Revolut emphasized that this temporary suspension is necessary for them to comply with the FCA’s new requirements.
Hot Take: Impact of FCA Regulations on UK Crypto Industry
The new regulations imposed by the FCA are causing some disruptions in the UK crypto industry. Companies like Bitfinex and Revolut are making adjustments to their services in order to comply with these rules. While these changes may be temporary and aimed at ensuring compliance, they highlight the challenges faced by crypto businesses in navigating regulatory frameworks. It remains to be seen how these regulations will shape the future of crypto in the UK and whether they will strike a balance between protecting investors and fostering innovation in the industry.
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