Bitfinex, a prominent cryptocurrency exchange, announced significant modifications to its operations in the United Kingdom. This move is in response to the new regulatory law in the country. Bitfinex has stated that these changes are necessary to align its services with the requirements mandated by UK financial regulations.
Starting January 10, 2024, Bitfinex will implement new measures affecting individual and corporate customers residing in the UK. The primary impact will be on existing individual customers and certain corporate clients who do not qualify under specific exemptions outlined in the UK’s Financial Promotions Order. This adjustment follows Bitfinex’s inclusion on the UK Financial Conduct Authority’s (FCA) warning list in October, which cautioned against dealings with unauthorized firms.
Impact on new and existing customers
A key aspect of these changes is the altered policy for new UK-based customers. Bitfinex stated that individuals who created accounts on or after November 1, 2023, will no longer be eligible for individual account verification. This restriction represents a significant shift in Bitfinex’s engagement with new clientele from the UK.
For existing customers, the modifications are set to restrict certain financial activities. These customers can no longer make new deposits, initiate new contracts, or increase existing margin positions from the specified date. However, Bitfinex assures that clients will retain the capacity to manage their current positions, including reducing or closing these positions and withdrawing funds.
The exchange said in its January 4 announcement: “If we understand you are not exempt, you will be notified separately by Bitfinex that effective from 10 January 2024, you will no longer be able to make any new deposits, create new contracts, or increase existing margin position.”
Exemptions and future operations
While these changes are comprehensive, Bitfinex has outlined specific exemptions. Corporate clients in the UK who meet the criteria of a high-net-worth company, unincorporated association, or trust are not subject to these new restrictions. Bitfinex emphasizes that such entities will continue to receive services as before, provided they comply with the legal definitions outlined in UK legislation.
“If you are a corporate UK resident making an application for verification, we may request further information from you as part of your application in order to ensure you meet the eligibility requirements as a high net worth company, unincorporated association or trust, or another relevant applicable exemption,” Bifinex added.
