Bitfinex Bows to UK Regulators, Lists New Product Changes

Bitfinex UK has unveiled crucial changes that will impact its customers in the country in line with the current regulations in play in the country. 

Bitfinex UK Customers to Embrace New Changes

According to the latest update from Bitfinex UK subsidiary, the exchange’s customers who created their account on or after November 1, 2023, will no longer be able to apply for individual account verification. The trading platform noted that this new measure has come to stay.

While it noted its plans to oust individual investors, crypto investors are also not exempt from this sweep-off. The exchange noted that its allowance now revolves around permitting only “High Net Worth” individuals. Bitfinex UK noted that it may require additional documentation to verify that a trader qualifies to be classified as high net worth under the current UK laws.

Cryptocurrency exchange regulations are becoming a global trend following the mishap that befell top platforms like FTX Derivatives Exchange and other top digital currency platforms in the past year. The implosions of these firms came with enormous surprises and it forced regulators around the world to step up the guidance for the industry with the mission to protect retail or individual investors.

One of the ways the United Kingdom is looking to rein in crypto market players is to limit the advertisement that is pushed out to investors. UK regulators want proper disclaimers to be featured in crypto advertisements in a bid to grant customers adequate knowledge that can guide their decision to pitch tents.

Bitfinex Existing Customers

According to Bitfinex, existing customers will also face some restrictions starting from January 10. The trading platform noted that this class of investors will not be able to “make any new deposits, enter into new contracts, or increase existing margin positions.”

Despite the restrictions, existing Bitfinex UK customers will have the allowance to reduce or close their positions and withdraw their funds from the platform. In a bid to make this service disruption more integrated, Bitfinex has opened a support line to help guide users who make inquiries.

Bitfinex with close affiliations with stablecoin issuer Tether Holdings Ltd has had it tough with regulators and the firm is notably doing all it can, like its peers trying to stay on the right side of the law.