Bitfinex to Ban U.S. Customers From Exchange Trading

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Bitfinex to Ban U.S. Customers From Exchange Trading

Bitfinex is one of the biggest cryptocurrency exchanges in terms of volume, has announced it will no longer permit investors in the U.S. to buy certain tokens on its exchange that may be at risk of foul activity with regulators.

According to their most recent announcement, Bitfinex will make adjustments to its service, no longer accepting verification requests for U.S. individuals effective immediately. Also, over the next 3 months, it will slowly stop all services to customers in the United States.

Bitfinex explains that the decision comes after a recent investigation by the SEC on how tokens are issued by way of an initial coin offering may be known as securities.
“We anticipate the regulatory landscape to become even more challenging in the future,” the statement reports.

Particulary, Bitfinex anticipates these firm regulations will apply to all ERC-20 tokens issued by the ethereum blockchain, citing two tokens (EOS and SAN) as offerings that will no longer be available for U.S. customers to buy.

The company stated that it would suspend the trading of the two coins beginning 12:00 p.m. on Wednesday August 16.

This decision is a prominent one as it’s the first signal that top cryptocurrency exchanges could take action to avoid consequences of the SEC’s current guidance, which suggests trading services would need certain registrations to sell blockchain-based securities.

The decision is a notable one as it is the first sign that major

Coinmarketcap released data, that Bitfinex now is the third biggest exchange by trading volume with $331 million in activity over the last 24 hours. EOS and SAN amount for $5.7 million and $1.9 million in 24-hour trading, separately.

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