If you have any coins on the Bitfinex exchange and you live in the US, you just got the boot
In a blog post out late yesterday, Bitfinex announced that they will no longer be servicing US based clients.
It has already been known that Bitfinex was moving in this direction, but now it is official and there is even a move out date!
What is going on?
Due to regulatory hurdles affecting all US based customers, Bitfinex announced that they will no longer be offering services to US based customers.
The official wording from the exchange:
Specifically Bitfinex had this to say:
"U.S. customers are already barred from receiving financing from other users on Bitfinex's peer-to-peer financing platform."
"This restriction will remain and, in addition, U.S. individual customers will no longer be able to provide financing on Bitfinex effective November 9, 2017."
What exactly does this mean?
This means that all US based customers holding cryptocurrency on that exchange must transfer them out and all US based customers will be prohibited from using any of the services on that exchange.
As you can see, the deadline for US based customers is November 9th, though trades and transfers may still be processed after that date by special request in order to accommodate all existing customers.
New old news?
The full exit of US based customers from Bitfinex has been in the cards for some time now.
They had already prohibited customers from certain states from using their services to try and comply with all applicable laws and regulations.
Now, the main reasoning behind the broad and far reaching move seems to be the regulatory requirements mandated by the US for US based clients.
Specifically, upon review of their services, Bitfinex concluded that the amount of resources they were using to service their relatively small US customer base didn't make sense financially any longer.
My thoughts:
This is really not all that surprising and is all part of regulation making its way into the cryptocurrency markets.
Local exchanges will rise up and be regulated more in line with the standards mandated by their own local governments.
In the short term it can feel like a bad thing and have some short term negative effects on prices etc.
However, the overall net effect will likely be very positive for the space. Some regulation is needed for these things to reach the masses.
As long as the regulation isn't too stifling, the net effect will be overwhelmingly positive.
Stay informed my friends.
Sources:
https://news.bitcoin.com/bitfinex-drops-us-customers/
Image Sources:
http://alpinesignstudio.com/the-importance-of-entrance-and-exit-signs-in-smyrna-ga/
https://perfectwasteoftime.wordpress.com/2012/11/22/in-english-please/
http://www.freedomworks.org/content/regulation-madness-coming-end
Follow me: @jrcornel
Now is the time for decentralized exchanges to step up. Regulation is a game of inches...once they get their foot in, game over. Before you know it, it's overloaded with bureaucracy and centralization.
Just funny Americans think they are the freest nation in the world, LOL...
Not that it matters, we're al debtslaves...
thats why we need more decentralized exchanges. COSS and BINANCE are great
👍👍
those fu..ing exchanges are looking to steal our money all the time.
bittrex are disabling accounts of no reasons
you are wright. they are a bunch of thieves
To add to that news - bittrex is now forcing us to verify accts with our information. Address, photo ID, SS #. So maybe they are going the compliant route to keeo servicing US. Either way, if you don't verify you can only withdraw .0025 BTC per day.
Still it is disturbing. If Steem ever takes off the US regulators will probably be all over Steemit. Currently for online sellers under US rule, who receive electronic payments from credit cards or Paypal, a 1099-K form is required if both conditions have been met in one year; $20,000 in funds received with a threshold of 200 transactions. Thanks for the update!
I wonder if someone is able to continue to execute trades when logged in with a browser like TOR? It sends a different IP address to the site your visiting usually outside of the US. There is an app for the iPhone named tunnelbear as well that does the same thing.
The ban applies only to verified US accounts that deal on Bitfinex. Unverified accounts can do whatever they please - at least that is my understanding of the situation.
nice :)
"Provide financing." I'm a little confused. I don't see how the reading of those excerpts equals that US-based customers have to move all their coins off the exchange. But maybe I'm missing something. It seems more to suggest that US-based customers can't use margin trading. Is there a part missing? Following you and love the posts! Let me know. I'm going to check right now.
Check out the link for more quotes from Bitfinex that may help answer your questions.
https://news.bitcoin.com/bitfinex-drops-us-customers/
Thanks man. I appreciate the quick turn around. Yeah. Just went over there. You're right, but that's a pain that they're closing down shop for US customers. I guess they're doing it by IP if you're unverified because there wasn't a KYC to have a little account over there. Thanks again. Take care!
Will it fall after its split ?