$10k Minimum Equity Requirement Removed by Bitfinex
Different exchanges have different policies regarding their trading and cryptocurrency exchange practices. These policies, however, are subject to change especially when their customer base begins to grow or the regulations surrounding crypto operations in such environments begin to change and Bitfinex is not an exception.
In a medium post published on April 9, the renowned Hong Kong Cryptocurrency exchange, Bitfnex announced the removal of the minimum equity for its users.
The company made this announcement due to the popular demand from traders to reconsider its minimum equity of $10k. This is to enable a broader range of investors trades on the exchange.
They further reiterated that this move does not necessarily mean traders have the access to unlimited margin borrowing but according to the terms and conditions on Bitfinex’s website, their customers cannot finance any more than 70% of the value of the tokens they purchase on the exchange.
Jean-Louis van der Velde, the CEO of Bitfinex exchange stated that they could not ignore the numerous trade access requests they were getting from traders that weren’t traditional to their usual customer base.
This announcement further details that Bitfinex has upgraded its infrastructure to support this development and grant access to a wider range of potential customers. This upgrade includes migration of their operations to a self-designed and dedicated server which uses premium hardware to enable advanced security and lowest form of latency.
This infrastructural development includes a newly redesigned support center and Know Your Customer (KYC) portal. It also includes a provision of sentimental analysis for some of the tokens they support so traders can trade with them if they choose to.
What’s The Way Forward?
According to recent reports, significant growth has been seen in the trading of institutional Bitcoin investment products for the fourth consecutive month. The growth of these BTC investment products has been characterized to be rising against crypto exchanges based in the United States as a percentage of their total trading volume.
Bitfinex has been in a struggle with Tether to maintain constant banking with Wells Fargo after the bank stopped serving them since 2017. They have however been banking with Deltec based in the Bahamas since October 2018 having been clients of Noble Bank in Puerto Rico previously.
Just last week, IronX – a new crypto exchange was launched to the public following the acquisition of $26 million in their Initial Coin Offering (ICO) program.