Bitfinex Banning US Customers

Cryptocrooks has always considered Bitfinex a trusted exchange, before the bitfinex hack, and after! Bitfinex continually seems to impress it’s customers with new features, and not giving into gimmicks, like leveraged trading or options. In this sense, Bitfinex is the purist cryptocurrency exchange. Bitfinex’s volume has gained significantly since in the months following the hack.

Bitfinex to Ban USA Traders

“Effective immediately, we will no longer be accepting verification requests for U.S. individuals”

Service Changes for U.S. Customers – Bitfinex Blog

 

 

SEC Federal Crackdown on Cryptocurrency and Exchanges

SEC regulators are continually adjusting their efforts to block trading of cryptocurrency tokens, coins and “securities”. One specific example of these is a case that the SEC is holding against the DAO, an ethereum token. Coindesk reports that cryptocurrency and cryptocurrency-based tokens may qualify as unregistered securities. One way the SEC could deal with this is to create their own blockchain based cryptocurrency or token system that would fall under their regulations. Enthusiasts would argue that any centralization of blockchain-based technologies would be unorthodox and contradict ideals of the current cryptocurrency community.

Record Volume from Un-Verified Accounts

Despite all the positives of Bitfinex, they seem to be doing a diservice to their US customers by banning trading in the next 90 days. This comes as a result of the closing of BTC-E, a once trust-worthy exchange that is now under investigation for money laundering, wire fraud, and several other felony counts.

Increasing Regulation in USA States

The announcement of closing their doors to US customers comes as a result of an internal audit. This audit revealed that as much as 80% of USA-based trading volume originated on non-verified customers. This poses a serious threat to the increasing regulations that have been introduced to cryptocurrency trading at a state level. The most prominent, and recent of these are: Washington, New York,

Unprecedented Growth in Cryptocurrency Market

Among all the cryptocurrency pricing surge this year, cryptocurrencies are receiving news attention at unprecedented levels. The government will step up and do what it can, but these infrastructures are designed not to be taken down easily or efficiently. At time of writing, coinmarketcap reported the entire cryptocurrency market cap as nearly $150 Billion USD. It’s easy to understand why the government and corporations are becoming nervous. Normal people are taking their taxed and hard-earned money to sink into “fake money”, and the government sees that as a way to “launder money”. We like to think of it as the people holding faith in like-minded people.

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