One of the world’s leading crypto exchange Bitfinex has announced to update its KYC policy in order to strengthen its security and better comply with regulators. Verified users will be required to provide proof of residential address.
Verified users need to share details on the source and use of their funds.
According to the updated KYC policy, Bitfinex will ask verified users to share details on the source and use of their funds, in addition to providing proof of residential areas. Bitifnex is headquartered in Hong Kong and is registered in British Virgin island. Paolo Ardoino, chief technology officer of Bitfinex, said that all users’ information obtained by the exchange is retained securely and confidentially.
EU regulators are adopting FATF guidelines.
The European Union is adopting crypto regulations based on the guidelines provided by the Financial Action Task Force earlier. The upcoming laws have already forced a few crypto exchanges and other businesses to shut down. Crypto exchanges and other crypto-related businesses that did not want to compromise with their users’ privacy had no other but to shut down. Simplecoin, Chopcoin, and Bottle Pay are among the crypto businesses that closed down due to upcoming regulations. Bitfinex is currently involved in many legal battles.