Bitfinex stops US residents support

Starting from 9th of November, popular Hong Kong cryptocurrency exchange stops US residents support 
17 October 2017   421

The popular Hong Kong exchange Bitfinex reported that the process of stopping user services for US residents, which was launched in August, will be completed on November 9. 

At the initial stage, which began on August 11, the exchange stopped accepting new requests for verification from US users. Its decision was made due to tightening regulation of the cryptocurrency in the US:

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.
 

Official Bitfinex statement

This process has been stretched for three months, and from November 9 all transactions, including trading, input-withdrawal of funds, as well as provision of financing for margin trading will become unavailable for US citizens on Bitfinex. Holders of RRT (Recovery Right Tokens) tokens from the US will be able to sell them, starting from October 27. At the same time, the American users of the exchange will not be able to buy them.

Representatives of the exchange recommended that American users of Bitfinex withdraw all their funds before November 9.

 

Bitfinex Banned Margin Trade For US Corporate Customers

This news is reported by the margin traders themself at Reddit
15 February 2018   52

One of the largest crypto-currency exchanges, Bitfinex, suddenly closed access to margin trading for corporate clients from the United States. This is reported by Bitcoin.com.

Some corporate customers of Bitfinex expressed their discontent on the Reddit after they found out that their access to the marginal trading was closed. At the same time, restrictions imposed at the end of last year in accessing the services of the exchange concerned only US residents who are private individuals. The Bitfinex knowledge base also says nothing about the restrictions for US corporate customers.

We’ve had a corporate account with Bitfinex since early 2017 and [are] approved for both exchange, margin, and funding. […] We’ve been making 6-figure trades on margin and currently have 2 margin positions open. On Feb 7th, […] we were locked out of margin trading. No explanation or warning of why our account can’t trade on margin. Worst yet, we can’t manage our margin positions. Not good in this very volatile market. We’ve received a couple of liquidation warning emails as the market dived down yesterday. We sent a support ticket […] and probably over 7 emails. No response from Bitfinex. It appears that they haven’t even opened any of the emails.
 

horaldrami90 at Reddit

Later that day, a Bitfinex representative called “bill_bfx” contacted the Redditor, stating that the issue had been “forwarded to the team to resolve for you.” 

a US corporate customer […] should not be using margin trading,” however, noted that “if you have open positions it is not acceptable to block you from closing them. 
 

bill_bfx

Bitfinex representative at Reddit

Another Reddit user reports:

I’ve been lending on Bitfinex for a while. Earlier today, the API responded that US users are no longer allowed to take or lend any currency denomination […] I understand that US retail customers cannot use it but I believe the policy did not apply to corporate customers. Has there been a recent change in policy? Will it be permanent or is this a temporary measure? 
 

Daveneer at Reddit

In early December, Bitfinex and Tether received summons from the US CTFC.