Bitfinex Requests Users To Provide More Private Information To Be KYC Compliant


The popular cryptocurrency exchange Bitfinex implemented additional controls to be compliant with (Know-Your-Customer) KYC procedures. During a conversation with a recognized news site, Paolo Ardoino, the CTO of Bitfinex, explained that they are always trying to enhance their compliance program. This is very important considering regulators are changing the legal frameworks in which exchanges operate.

Crypto Exchange Bitfinex Imposes New KYC Regulations

Clients of Bitfinex will be required to provide further information if they want to continue operating in the platform. For example, users will have to provide additional data, including their residential address.

Verified users have to furnish information about the source and use of the funds that include proof of address, among other things. The exchange has always allowed unverified users to trade on the exchange and participate in limited trading activities.

Not only will users will have to provide a picture of of themselves holding a government-issued identification card, but they will also have to share with the exchange information about their objectives when trading on the platform. According to Mr. Ardoino, all the information that they collect from users is properly stored, securely and confidentially.

In the future, other exchanges could gather more data in order to have more information about their clients and about how they use their digital assets.

It is worth mentioning that the exchange Bitfinex has been involved in different legal issues and controversies due to the Tether (USDT) stablecoin. The New York Attorney General (NYAG) has placed accusations on Bitfinex for using the reserves meant back the USDT stablecoin.

Regulatory agencies have been trying to regulate the cryptocurrency market and exchanges in the space. The main goal is to have control over the users of these platforms and understand whether they are involved in illegal activities.

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