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Cryptocurrency Exchange Bitfinex Says Goodbye to US Customers

Cryptocurrency enthusiasts in the United States haven’t been treated fairly in recent years. Various states force Bitcoin companies out due to harsh regulations. Some ICO project won’t even allow US investors due to potential SEC repercussions. To make matters even worse, Bitfinex is now barring US customers from trading on the platform. Certain tokens will no longer be available for purchase either.

It is not entirely surprising to learn Bitfinex is taking some drastic action. The company has eluded the grasp of the SEC so far despite trading tokens which can be labeled as securities. More specifically, their trading of IOTA raises a lot of questions. Other ERC20 tokens will be subject to expected tighter regulation in the future as well. This doesn’t bode well for tokens such as EOS and SAN, which are both traded there as well.

Bitfinex Closes the Door on US Customers

Do keep in mind these currencies will not be removed from the exchange. Instead, US customers can’t access those trading pairs in the future. Given the SEC’s stance on ICO tokens, such a change is only normal. Companies would rather deny US customers than deal with the governing body over not adhering to regulation. It wouldn’t be surprising if other exchanges around the world took similar action in the next few weeks. Nearly every ERC20 token is a risk for companies dealing with US customers right now.

This is not the only change coming to Bitfinex either, though. They will no longer accept verification requests from US individuals as of yesterday. All other services will be degraded and eventually discontinued for US customers as well. It is evident the company wants to get as far away from the US market as possible. These decisions will also affect their margin trading business, to say the least. A lot of exchanges will pay the price for getting involved with ICO tokens, that much is evident.

It is the first time we see a major cryptocurrency exchange take such a decision. All other customers of the platform will not be affected by this change, though. US customers are advised to move all of their funds off the platform over the next 90 days. The third-largest exchange in the world turns its back on US customers for obvious reasons. This will significantly impact the exchange’s position in the overall cryptocurrency landscape, though. For IOTA, their largest exchange will soon be gone. The IOT/USD pair on Bitfinex has generated over half of the token’s volume for quite some time now.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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