Bitfinex, the popular cryptocurrency exchange, is clamping down on UK customers in a move that is likely to stir the crypto community.
Effective January 10, 2024, individual and corporate residents of the UK, unless meeting specific exemptions, will be barred from making new deposits, opening new contracts, or boosting their existing margin positions on the platform.
Customers will now have only two options: reducing or closing their positions and withdrawing their funds from the platform.
The news coincides with heightened regulatory scrutiny of the cryptocurrency industry in the UK. The Financial Conduct Authority (FCA) has recently ramped up its efforts to regulate crypto exchanges, raising concerns about compliance and potential legal implications.
While Bitfinex hasn’t explicitly stated the reason behind the restrictions, industry experts believe it’s a strategic move to avoid potential conflicts with the FCA.
The new restrictions are likely to be met with disappointment by UK Bitfinex users. The exchange is a popular choice for experienced traders due to its wide range of features and competitive fees. However, the restrictions will make it more difficult for UK residents to use the platform.
Bitfinex added that new customers who created accounts on the platform on or after Nov. 1 2023 in the UK will no longer be eligible to apply for individual account verification.
Also Read: Coinbase Tightens UK Grip: New Compliance Measures Passed
