The exchange sent emails to its verified users asking for added identification info that it will use to strengthen its KYC requirements.
Bitfinex requested for additional personal data
On December 27, the Block reported that the email from Bitfinex intends to enhance its due-diligence procedures and bring all the accounts of their verified users to the same level.
In the email, Bitfinex’s verified users were requested to share information on the source and use of funds. They were also asked for the proof of their residential address like utility bills.
Paolo Ardonio, the Chief Technology Officer (CTO) of Bitfinex, emphasized that the exchange is constantly working for the improvement of compliance.
Furthermore, Ardonio mentioned that they are always in contact with Bitfinex customers. Additionally, the exchange regularly updates the expired KYC documents and clarifies the nature of particular transactions.
The CTO also assured their clients regarding the confidentiality regarding the information that the exchange attains. According to him, while they allow unverified customers on the platform to do limited trading activities, the exchange always makes sure that the customers, regardless if they are verified or not, are respecting the same ground rules.
There is uncertainty regarding Bitfinex’s step to tighten KYC procedures. Since April, the exchange has been under ongoing investigations conducted by the New York Attorney General.
Bitfinex claimed that it never served citizens in New York. Therefore, its terms of service note that all of its customers must be foreign citizens. This claim is a part of the exchange’s motion to have the NYAG investigation halted.