Bitfinex Abandoning US Market

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The Bitfinex digital currency exchange announced late last week that it will no longer provide exchange services to U.S. customers. A post on the company’s website provided details about the decision, and confirmed that all services to clients in the United States will end within the next three months. The announcement suggests that this move has been under consideration for some time.

According to Bitfinex, there were a number of factors that influenced the decision. The company has apparently encountered difficulties in its efforts to identify “compliant banking solutions for U.S. individuals” and has been facing a backlog of requests for verification. In addition, the announcement said:

• A surprisingly small percentage of our revenues come from verified U.S. individual accounts while a dramatically outsized portion of our resources goes into servicing the needs of U.S. individuals, including support, legal and regulatory.

• We anticipate the regulatory landscape to become even more challenging in the future.

• Bitfinex is not based in the United States. Exchanges based in the U.S. are better positioned to properly service retail U.S. customers.

For now, the company is halting all verification for U.S. persons. Bitfinex will be disengaging from its existing U.S. customers in the coming weeks, with the goal of exiting the American market altogether within 90 days. Finally, customers in the United States will be barred from trading ERC20 tokens, effective tomorrow.

The views expressed by the authors on this site do not necessarily represent the views of DCEBrief or the management team.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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