Bitfinex Drops US Customers

Bitcoin exchange Bitfinex has just announced that it is pulling out of the US retail market due to the challenging regulatory climate. US customers have approximately 90 days to discontinue all trading, and US holders of ethereum ERC20 tokens have only 5 days to stop trading them on the exchange.

Also read: Bitfinex Enables Bitcoin Cash Deposits and Withdrawals but Credits 15% Less

Leading bitcoin exchange by USD volume, Bitfinex, announced on Friday that it is exiting the U.S. retail marketplace. Effective immediately, the exchange no longer accepts verification requests for U.S. Individuals. “We have for some time considered pulling away from the retail marketplace in the U.S.,” the exchange wrote, adding that:

Now with a current backlog of verification requests and ongoing difficulties in providing USD deposit and withdrawals for U.S. individuals, we feel that the time has come to begin disengaging from U.S. retail customers.

Bitfinex explained that “a surprisingly small percentage of our revenues come from verified U.S. individual accounts.” Meanwhile, “a dramatically outsized portion of our resources goes into servicing the needs of U.S. individuals, including support, legal and regulatory.” Citing that it has been able to “normalize banking for some corporate customers and individuals in certain jurisdictions,” Bitfinex admitted that “compliant banking solutions for U.S. individuals remain elusive.” Consequently, the exchange stated:

Over the next 90 days, we will be discontinuing services to our existing U.S. individual customers.

Bitfinex expects the U.S. Regulatory landscape to be even more challenging in the future. “Exchanges based in the U.S. are better positioned to properly service retail U.S. Customers,” it wrote.

In addition, the exchange also announced that U.S. customers will no longer be able to trade ERC20 tokens issued through initial coin offerings (ICOs) on the exchange. This part of the changes will commence at noon UTC on August 16.

“Pursuant to the recent report of investigation issued by the U.S. Securities and Exchange Commission,” the exchange wrote to its customers, “Bitfinex is taking the proactive step of barring U.S. customers from trading certain digital tokens that may be deemed securities in the eyes of the SEC.” Currently, tokens active on the exchange subject to this restriction are EOS and Santiment (SAN).

What do you think of Bitfinex dropping their US customers? Let us know in the comments section below.

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  • Ralph Pohl

    Can’t blame them and I am in the US

  • Riaan Walters

    About time.

    • Angelo Jamaica

      Well I am in the US and they can all speak for themselves.
      Silver is not affected by bitfinnex. another fkn control entity, it is not controlled by governments, another fkn control entity, It is controlled by ” I”. I am that …. I am.
      so fk you bitfinnex. Pusseys. so much for decentralization. Now there is a dam joke for you.

      • Dustin Smith

        Angelo wtf are you saying so much for decentraliztion the american government will try to centralize anything they can..(thats why bitfinex left the usa)

  • They are still looking for ways to quench cryptocurrency. Failed bump!

  • Robin Thorsen

    does this mean that US customers can no longer keep their coins in bitfinex, or only that you cannot trade them? in other words, if one has xrp or ethc they can no longer store them there and have to move them out?

    • Peter Griffin

      You have to move them. All services to US customers are being discontinued. Besides, you really shouldn’t leave anything on an exchange for safe keeping. It’s not safe at all.

    • Angelo Jamaica

      fk bitfinex, obviously they do not give a dam about its clients. Everyone should move their accounts.

      • Dustin Smith

        no bitfinex is doing the right this Angelo ,,,, the whole reason Cryptos work is because the goverment doesnt own them….but they are sure about to start trying…its just like the war on drugs government will take all they can and pass it out and control it…. DO NOT SUPPORT THE USA fuck america for being evil…(i know this country as a whole is filled with hate)

        • Heyyyyy…. I don’t agree with what the USA is doing on many levels. Nonetheless, you can’t honestly say that “…this country as a whole is filled with hate”. We’ve got a LOT of hate here but we also have a LOT of love here too. LOL! And we aren’t the only country with hate inherent in their policies, institutions, communities, etc.

        • Hocky Krack

          Never forget, without USA our world would be national socialist, communist or stalinist even. If only that would actually be what you want?

      • William Wanklyn

        Angelo, Angelo, it is not Bitfinex that is the problem, it is the SEC and the Treasury Department. Realise you live in a police state that will not permit you any freedom.

      • jax

        IMO.. US gov is only ever going to support cryptocurrencies if they can also control their valuation. US is broke, the $ is basically living on”trust” only. due to compound inflation of around 1.7% on average per year. and the $ being untied from gold. so the $ today is worth around 14-15 times less then in it was in 1865 when it was tied to gold. US keep borrowing money which they can never pay back and keep making more worthless paper $ notes. therefore US gov are desperately trying to keep their citizens from moving money outside their reach. Bitfinex and the other non US controlled exchanged are being forced away from US market by the US gov.

  • janet wong

    “All truth passes through three stages – first, it is ridiculed, then it’s violently opposed until finally it’s accepted as being self-evident.”

    • Hocky Krack

      Well said. Only who has said it?

  • Christian Cortez


  • It pisses me off because I use them but I don’t trust the banksters either that’s a good part of the reason I am into CC. It also makes me sad that the best solution is to cut off the US. Why not just let US citizens use Bitfinex just not their banks.

    • Akindeji Hill

      I also wish that they would just restrict bank access, but perhaps they just cant change their infrastructure to allow that so easily. I am in the US too and this is a great disadvantage to me. Yet I can’t blame them for looking out for their own interests and cutting out a huge headache.

      If we want to get mad at someone we need to get mad at our law makers.

    • Bruce Bates

      there are better exchanges

      • which ones that carry iota and eos?

        • You can buy IOTA on the OTC Slack exchange iotaexchange dot com or coinspot dot com dot au

          You can buy EOS at bter or kraken or exodus dot io or shapeshift dot io

    • William Wanklyn

      If Bitfinex allows US persons on its exchange, it will find itself in the same place as BTC-e. Extra-territorial take down.

  • I would do the same. I only operate with trusted long-term partners in the US. Trust is most important. Anybody I know in the US that even starts to speak of using US Law is barred from consideration to be anywhere near me. A quiet partnership is best. I often feel this country is more socialist than is portrays itself. It is hard to argue with me since using the Law in everyday life is obviously Socialist. I want commitment in private not your socialist baggage. So, it does not surprise me that the best FinTech in ages will find better sailing under a more Freedom Loving Flag. All the best, Bitfinex! You made the right decision.

    • mark

      This has nothing to do with socialism.

      • Example?

      • PBV

        I think the point that he is making is how extensively U.S. individuals and entities rely on litigation – essentially, using the government for leverage in private affairs rather than being individually responsible and trustworthy.

        Add to that the use of “socialist” government-granted monopoly laws like the out-of-control U.S. patent system, or the laws on accredited investors that prevent the large majority of citizens from participating in ICOs and it’s not a bad argument. In the news this week we see NASDAQ and Goldman Sacks filing patents on blockchain technology that already exists, so that they can use the government to harass and drive out competitors.

        • Super! This example is application of civil law applied globally and its use to snuff out obvious competitive local application of private organic relationships in order to commune as in gather monopolization in an effort not to eradicate but to funnel its resource and stuff it into an already existing predilection. A FIAT regulatory structure. Peers of Virtual Currency will not sit in judgement. Peers of the FIAT, will decide and apply the Law.

        • rafter75

          In a way he is correct…it blows my find how the US still portrays itself as land of the free..every year taxes are eating people alive. Everyone says ” i own this house” or “i own this car” …umm no you don’t..unless you paid cash in full, the bank owns these things..and even if you pay off your house, if you don’t pay property taxes, they will take your land from you faster than a speeding bullet. Many states also charge inheritance or estate taxes as well. So even if someone worked their whole life paying taxes on this earned income and putting it into an asset such as a home, their heirs still have to pay more taxes when its given to them..Wait until they get their hands on the new cryptosphere..they are drooling at this and smell blood in the water..This is not a free country in any sense of the imagination

          • ParmalatHarlot

            Walmart still says it has the lowest prices. Just because the Government/Corporation says it, doesn’t mean it’s either ever been true or, still is.

            I’m starting to think “Land of the Free,” meant when the government told new settlers to go stake their claims on the “free” land stolen from the indians. Maybe it was when the Slaves were freed from the South and mistook not being forced to work, or get whipped and starved by some by some small cocked Southerner meant freedom. Nope… It meant they got to pay taxes too.

            The loud mouthed American bitches about being taxed 40% and receiving no benefit, while socialist countries tax 60% and actually provide food, clothing, college education, job training, and medical care…

  • In addition getting the wider population to adopt the use of Crypto is not advanced by cutting them off. It ‘s further proof that many of the crypto folk have different priorities.

  • ffd jhky

    America become slowly an open air prison…They just replace nazi sistem with their own based on bloodydolars…

    • Angelo Jamaica

      So when are the jews going to the gas chambers? Oh no, you mean the jews are the nazis. Your fkn right.

      • ffd jhky

        Soonner is better.

        • Hocky Krack

          You are both completely nuts.

  • Dr. Bubó

    Don’t go to Coinbase, DON’T GO TO COINBASE!!!

    • Angelo Jamaica

      you are an idiot. No content but your rant.

      • Dustin Smith

        hahaha coinbase is crooks imo…i mean they arent huge liars aor anything from waht ive seen (they just overcharge everything)

        • Dan Lund

          It’s a good way to get your feet wet, but then you can use gdax as a maker for much lower.

    • I wouldn’t touch Coinbase with a 2000 ft pole or a 5280 ft rod.

    • Ray

      Where else is there that’s secure, easy, and reliable?

  • UltraParadigm

    And the rise of decentralized exchanges begins 🙂

    • William Wanklyn

      Yes, but the concept comes up against the hard wall of crypto/fiat convertibility. Decentralised exchanges are really peer to peer facilitators. People selling crypto for cash in the US are being jailed for not being licensed. Can’t win unless you stay inside the crypto space. Coming, though.

      • Nathan Fitzer

        And it seems like it’s almost impossible to get a license

      • Menno

        Then the market is ripe for an anonymous and untraceable platform for peer to peer currency exchanging.

        One such platform on the drawing board right now is Spectrecoin’s planned SpectreCash Android app, due for release mid-2018.

        • William Wanklyn

          I had a look. No white paper that I could find and no discussion of fiat.

    • William Wanklyn

      Tether looked to be a viable crypto/fiat gateway, issuing tokens backed 100% by deposited fiat. The tokens are tradable on various exchanges including Bitfinex.

      However, since April 2017, incoming wires of fiat to the company’s bank accounts have been blocked by the banks, so no further international activity is possible. The deposits held are in the region of USD 320,000,000 already.

      Also, we have a huge trust problem with this. What are they doing with all the cash? Is it still there?

  • Liberty88

    The Securities Extortion Committee got another pound of flesh….

    The only people who won were the lawyers.

  • Bruce Bates

    I find it funny everyone blames america. I wouldn’t ever use an exchange that requires verification. The problem isn’t america trying to regulate it, the problem is the copanies trying to regulate by requiring verification. It defeats the entire intent of “decentralized”

    • Steve

      Better to use somewhere like BTC-e eh? Oh wait …

    • William Wanklyn

      I don’t think you will find an exchange which accepts deposits and withdrawals in fiat that does not require hard ID. KYC and all that.

    • Menno

      And what would happen to an exchange that does business with U.S. customers, but does not comply with U.S. KYC laws?

  • David Richardson

    I am sick and tired of the U.S. Government sticking their nose where it doesn’t belong. What a U.S. Citizen does in the U.S. is their business. What they do outside the U.S. should not be…

    “If I want to dump my money in a hot tub, get buck naked, and play Scrooge McDuff… That’s my business!”

  • I don’t blame them and I, too, am a USA citizen.

  • This happened in the international banking industry. When it was all the rave to get an off-shore bank account, the USA illegal organization, The Internal Revenue Service (IRS) enacted FATCA in 2010. “The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments. The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets.”

    So rather than spend a gazillion dollars to satisfy the USA’s demands, some banks chose to no longer service USA citizens. Other banks chose to give the USA the finger because they felt that USA isn’t the God of the World and they won’t let them tell them what to do. So they said “Take your USA citizens and shove it up your USA butt!”

    Someone stated that the USA is doing their shenanigans to protect the banks’ best interest. That is incorrect. They are doing it to protect THEIR best interests.

    • Fu Manchu

      You say that as if the US Government isn’t simply an extension of our banking system. One owns the other and the last I checked it was the Fed who owned the debt the government is responsible for paying off, not the other way around.

      • William Wanklyn

        Got that right, and who owns the Fed? That would be the banks, including several European banks.

      • Quite frankly it is the group of elitists who ARE the financial institutions. We can talk about the Bilderberg Group, etc or how George Soros had a very negative financial impact on the Bank of England, Bank of Thailand, some Greek Banks, etc with his hedge funds and other nefarious financial corporations and holdings. The US government is just a peon in the whole scheme of things. But that doesn’t nullify the fact that the USA does indeed dictate what other countries should and should not do and those other countries just ain’t liking that crap.

        • Hocky Krack

          Still it is much better than anarchism and chaos, isn’t it?

          • I like CHAOS! Else boredom sets in and I have to move on.

  • The US still has coinbase .. etc

  • Tom Cod

    Funny. The American dream is what the Government lets you do. Sound like China to me

    • Hocky Krack

      Believe me without government you would live even much worse. Like ISIS or so. Besides Chinese government today is not that horrible as it used to be.

  • Mads Olsen

    US US rendering it self irrelevant and turn everyone against themselves on the global stage, getting a lot of help from their sanctions regime. Soon the USD will plummet and the US will face reality the hard way.

    • “Soon the USD will plummet”? It has been plummeting for quite some time.

  • Karol Olszewski

    All world needs to get united to remove this cancer (USA)

  • Dhruv Maitre

    What do you guys think about the Impact of this decision?

    • William Wanklyn

      More light on the draconian regulation inside the US of A.

      Even American citizens outside the US are subject to the same regulation. The take out BTC-e is another example of the extra territoriality of US enforcement around the world. Mega Upload and Kim Dot Com another, victim of the Hollywood copyright and propaganda mafia. Kim Dot Com, an emigre Russian, was arrested in New Zealand by a helicopter load of US Special Forces at his home and his assets seized.

      This is bad shit. The failing US dollar is being propped up by guns.

  • Cristi Cristi

    typically the greed of the Trump president which wants to make America a better place by forcing people to give more money instead of developing economy without people’s money. A greed and lazy multi-billionaire doesn’t prefer to reinvest funds from his company but penalizing his employees more.
    Nowadays most of countries have the worst presidents/governments ever.

    • William Wanklyn

      It is not Bitfinex which bans, but US regulators making it impossible for Bitfinex to continue servicing Americans. No matter how much is traded, rich and poor alike.

      Can’t see how Trump has much to do with this, these regulations have been tightening up for decades.

  • For decades, America has been creating hatred against itself. Every empire falls, nothing lasts forever. The ones that get it the worst are the American citizens, which are not all bad. Thanks to a corrupt gov’t causing world issues — that is the greatest pity.

    • Hocky Krack

      U.S. “empire” isn’t falling any time soon. Commies hate it, nazis hate it, religious extremists hate it. Which one are you then?

      • None, and the US has already been falling – but good luck trying to save ship. You’ll need it.

        • Hocky Krack

          Just telling opinion as well as you are. Real development remains to be seen.

  • Gary Fowler

    I see stupid people. All we have to do to get around US regs and IRS taxes is use an overseas anonymous proxy or VPN. You really think I’m gonna report $10,000 bitcoin profit to the IRS? Haha! Think again. The US train wreck has already occurred, we just haven’t gone over the edge into the abyss yet. Sorry, I’m not supporting that shit.