Bitfinex Closes Operations for US Customers2 min read

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Screenshot Bitfinex

Bitfinex, one of the world’s largest crypto-currency brokers, has announced the end of operations for US customers. In an official announcement made by the brokerage firm on October 16, the trading, deposit and withdrawal activities for individuals from the United States will be closed until November 9 of this year. In addition, customers in the US are now barred from trading digital currency with other users on the trading platform. 

Although Bitfinex is a Hong Kong-based digital currency broker, it has more than 40% of the global dollar trading, ie a significantly larger turnover than some US-based crypto brokers. 

The closure of Bitfinex’s activities for US customers was to be expected. In August, the company publicly disclosed for the first time its plans to close its services to clients in the country of Uncle Sam -0.42%due to the impracticable regulations and policies imposed by the US government. Specifically, Bitfinex has demonstrated displeasure with specific regulations, such as New York’s BitLicense, which requires companies in the crypto segment to comply with state regulations, in addition to policies already imposed by the federal government. The broker thought the measure unnecessary, because it brought more problems than solutions. 

The decision by Bitfinex is likely to negatively affect the crypto-coins industry in the United States. The imposition of state-specific licensing programs, such as BitLicense, which requires companies to spend more than $ 100,000 with legal costs, plus inappropriate federal imposts, will hamper the performance and growth of crypto startups within the country. 

The exit of the North American digital currency broker will also likely cause new ventures and crypto entrepreneurs to move to markets with more efficient regulation, such as Japan, which recently introduced a program simplified and transparent national licensing. 

By Amanda Bastiani – TradingView

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