Bitfinex Beefs-up KYC Requirements, Asks Users for Additional Info
Bitfinex steps up KYC requirements, asking verified users for proof of residence, and the source and use of their funds.
Cryptocurrency exchange, Bitfinex, has reportedly strengthened its know your customer (KYC) requirements, sending an email to verified users asking for more identifying information.
Additional personal data requested
According to a Dec. 27 report from the Block, the purpose of the email from Bitfinex was to enhance the exchange’s due-diligence procedures, and bring all of its client accounts “to the same level.”
Verified users were apparently asked to share information on the source of — and use of — funds, along with proof of residential address, such as a utility bill.
Constant drive to improve compliance
Bitfinex Chief Technology Officer, Paolo Ardoino, explained that the exchange is always working to improve compliance.
“That means we are in contact with our customers continuously. We may, for example, be updating various KYC documents that have expired, or clarifying the nature of certain transactions.”
Ardoino assured clients that all information is retained securely and confidentially.
Ongoing investigation by NYAG
It is uncertain whether this latest tightening of KYC procedures has been spurred by any particular event. However, the company has been subject to an ongoing investigation by the New York Attorney General since April.
Part of Bitfinex’s motion to have this investigation halted is a claim that the company has never served citizens in New York. Indeed, its terms of service state that all customers must be foreign entities