Bitfinex aims to collaborate further with government authorities by sharing customer tax data
Users of Bitfinex have been instructed to submit their tax information in new guidelines. Customers have been ordered to provide their details to coincide with Bitfinex's desire to collaborate with local authorities.
While the company is registered in the British Virgin Islands, a well-known tax haven, Bitfinex will retain full access to user tax information. But may also feel obligated to share the information with authorities where necessary.
Tax information won't be the stopping point in user identification, according to the company's user-wide email. Citing the BVI government “may then exchange that information with the tax authorities of the customer’s country of residence”.
It's only been recent that Bitfinex has implemented such stern policies towards its existing users. Over the span of 2017/18, Bitfinex has transitioned from an exchange with a lax approach towards regulation and customer information. To boasting one of the most rigid and stern systems that users now must abide by.
“The government of the BVI may then exchange information with the tax authorities of the customer’s country of residence, consistent with the British Virgin Islands law, the U.S. Foreign Account Tax Compliance Act (FACTA), and the Organization for Economic Co-operation and Development Common Reporting Standard (CRS).”
The approach taken by Bitfinex has kicked up its fair share of dust and hostility by members. According to a widely shared Tweet by @Whalepool. Elaborating further on the following:
“We have not sent this message to all users. We have deliberately targeted users that we believe have an obligation to self-disclose. If a user has _not_ received a message from us, she need not self-certify anything to us at this time.”
Bitfinex is now requiring users to give their tax information so that it can send it to BVI which will exchange it with your country's tax authorities.
We strongly disavow.
If you also disagree with this decision, peacefully protest it by withdrawing your money from Bitfinex pic.twitter.com/VkYchg3sqg
— Whalepool (@whalepool) May 17, 2018
Understandably, an unknown number of Bitfinex users have declared their intention of instigating a boycott of the company due to its harsh pivot towards personal information. Cryptocurrency users and traders are fast becoming one of the most scrutinized investment demographics over the last year.