Bitfinex, a cryptocurrency exchange, has reportedly strengthened its ‘Know Your Customer’ (KYC) requirements, sending an email to verified users asking for more identifying information.
ICYMI: Bitfinex tightens its KYC process, asking verified users to submit additional informationhttps://t.co/1oWGgZb1n2 — The Block (@TheBlock__) December 28, 2019
On December 27, it has been reported from The Block that the purpose of the email from Bitfinex was to enhance the exchange’s due-diligence procedures and bring all of its client accounts “to the same level.”
Bitfinex Beefs-up KYC Requirements, Asks Users for Additional Info https://t.co/fcWzuTMQfB pic.twitter.com/KGiY4I2ywY — Mantica Crypto (@ManticaCrypt) December 27, 2019
However, verified users were apparently asked to share information on the source and use of funds, along with proof of residential address, such as a utility bill.
“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.”
It has been analyzed that Ardoino assured clients that all information 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.”
Likewise, it is uncertain whether this latest tightening of KYC procedures has been spurred by any particular event.
Thus, the company has been subject to an ongoing investigation by the New York Attorney General since April.