Bitfinex tightens its KYC process, asking verified users to submit additional information

Quick Take

  • Crypto exchange Bitfinex has strengthened its KYC process
  • The exchange is asking verified users to submit additional information, including proof of residential address
  • Paolo Ardoino, CTO of Bitfinex, told The Block that the exchange is “always” working to improve its compliance program.

Cryptocurrency exchange Bitfinex has tightened its know-your-customer (KYC) process, The Block has learned.

According to an email sent to Bitfinex’s verified users, seen by The Block, the exchange is enhancing its due-diligence procedures in an effort to bring all of its client accounts “to the same level.” 

Paolo Ardoino, chief technology officer of Bitfinex, told The Block that the exchange is “always” working to improve its compliance program. “That means we are in contact with our customers continuously. We may, for example, be updating various KYC documents that have expired, or clarifying the nature of certain transactions,” he said. 

In the email, Bitfinex asked verified users to share details on the source and use of funds, as well as proof of residential address, such as utility bills. 

Ardoino said all information that Bitfinex obtains from its customers “is retained securely and confidentially.”

“While we do allow unverified customers on our platform to engage in limited trading activities, we always work to ensure that all customers – both verified and unverified – are respecting the same ground rules,” he concluded. 

In June as well, Bitfinex was asking clients to share additional information, including "a clear and detailed explanation of ... activity and objectives” and "scan of your current government issued ID and an image of you holding your photo ID."

Bitfinex is currently involved in a legal battle with the New York Attorney General (NYAG). The NYAG has accused Bitfinex of illegally using the reserves of the Tether stablecoin–originally claimed to be backed one-to-one by U.S. dollars—to fill a financial hole of $850 million. The case has been ongoing for the past six months. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Aug 11, 2021, 5:18PM UTC