Cryptocurrency exchange Bitfinex steps up its KYC game

Leading cryptocurrency exchange Bitfinex has strengthened its KYC compliance procedures in an effort to bring all its customers on the same page and crank up the due-diligence methods.

One of the most controversial yet widely used cryptocurrency exchanges, Bitfinex, is known for its advanced and margin trading platform and some of the most efficient over the counter services available in the cryptocurrency market today. And although its legal scuffle with the New York Attorney General (NYAG) over illicitly exploiting Tether stablecoin reserves is not over yet, it is leaving no stone unturned to ensure that its services are not misused, adding further legal complications.

Cryptocurrency exchange Bitfinex cranks up KYC process

It was recently reported by The Block that the exchange has announced through an official email sent to a verified list of customers that it requires additional information, such as residential proof, as part of its renewed KYC procedures.

Paolo Ardoino, Bitfinex CTO, confirms that the move is part of its ever-evolving security protocols and compliance program. We are always in touch with our clients. Our dedicated team is tracking and updating expired documents along with seeking clarification on unsure transactions, Ardoino added.

According to the email, Bitfinex has requested the verified group of users to share information on the source and usage of the funds along with a proof of residence. Once received, the information will be stored and retained in a highly secured form, with no possibilities of unverified access and misuse, Ardoino confirmed.

Ardoino concluded his statement by adding that although Bitfinex enables unverified users to engage in short-term transactions with limited features, it is taking this initiative to ensure that both verified and unverified group of users share the same level of scrutiny and verification when it comes to utilizing the platform’s services.

Meanwhile, this isn’t the first time Bitfinex has stepped up its security controls. In June, it requested a detailed clarification on activities and objectives from some clients along with an image of their government identity proof in the wake of increased regulatory scrutiny.

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