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Bitfinex Exchange Asks for Customers’ Information: Tax Regulations on the Loose

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Bitfinex
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Bitfinex makes up for one of the largest and most popular exchanges among the crypto investors, also making the largest exchange by trading volume in accordance with CoinMarketCap. However, there have been some sayings that certain customers were asked to require a certain set of personal information, as indicated in the emails sent by Bitfinex exchange. On this occasion, Bitfinex explained that they are planning on sharing the mentioned information with the authorities in the British Virgin Islands, all in accordance with the local law and due to a fact that Bitfinex is actually based in this specific location.

Bitfinex Asks for Personal Data

The information appeared as provided by a portion of Bitfinex customers, that Bitfinex exchange has sent emails to some of their customers where they have stated that they are not asked, but “required” to provide a certain list of personal information.

On this occasion, the exchange explained that they are planning on sharing the requested data with the British Virgin Islands, as in accordance with the local law and the fact that the mentioned exchange is based in the British Virgin Islands.

Bitfinex stated further in the mentioned emails that the messaged customers should be able to provide their information as per request by May 24th the latest, which is 5 days away from the time of this writing.

It was further stated that Bitfinex is not specifically requesting that information for the government of the British Virgin Islands for tax purposes, but that the government may decide to send that information to the government of the emailed customers.

The Bitfinex exchange has also clearly stated in the email that was sent to a certain group of customers, that they are obligated and pursuable by the law of British Virgin Islands to ask that sort of information from their customers and that they are legally bound to provide it in accordance with the mentioned legal pursuance.

And what if those customers would refuse to do so?

What if those customers have decided to use blockchain-based currencies in order to keep their transactions and trades private, whilst their exchange of choice is now legally bound to provide that information to the authorities that are then entitled to provide that data to the tax authorities of the chosen customer’s country of residence?

Then Bitfinex has something more to add: Bitfinex is reminding their customers that they are as well legally bound to provide the required information as requested by the government of British Virgin Islands, as they have agreed to all terms and policies by accepting the agreement, which was a part of the process of account making.

As all customers have agreed to use Bitfinex in accordance with applicable laws and regulations, all asked parties are legally bound to provide the requested information and fill out the forms that were initially provided in the mentioned emails.

If the mentioned customers are to fail in doing so, Bitfinex is then entitled of legally pursuing each customer, as they have broken the agreement of terms of services, which makes this group legally vulnerable in this case.

Bitfinex Responds

Bitfinex made sure that the panic is not being spread across the community, so their team tweeted about the mentioned case. Bitfinex exchange stated in the initial tweet that only the customers that have received the email are to respond to the request.

They further added that they have not sent the mentioned emails to all of their customers, but only to a significant portion of Bitfinex users that were targeted simply because they are further asked to make self-certifications.

Although the panic was probably stopped from being spread further, Bitfinex didn’t provide detailed info about why the British Virgin Islands asked for the requested information, so it is not yet certain whether the picked customers would be surpassed to the tax authorities in their country of residence.

Some customers based in the US were also asked to provide this information by the request.

It is not hard to guess that the crypto community didn’t welcome this news. Moreover, this is also not the first time that Bitfinex is being linked to scheme-like cases.

If we go a little while back, Bitfinex was also once accused of using Tether for pumping the price of other currencies. Given the fact that Tether and Bitfinex are sharing a mutual CEO, the allegations had strong arguments backing them up.

It is also not hard to guess why Bitfinex decided to try and move its base from the British Virgin Islands, where it is currently located to Switzerland. Switzerland might be a better choice for this exchange, as this country is considered to be a tax paradise.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

A matter of time before TRON (TRX) achieves mass adoption

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TRON
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Tron (TRX) has all its eyes on decentralizing the internet, or rather content-sharing to ensure that creatives, artists, musicians, and authors can all release their content without the need of middle companies. As it seems, Tron’s founder hopes that the coin will challenge the globe’s major content providers like Facebook and YouTube.

The coin has undoubtedly made progress since its launch from a coin offering on the Ethereum ledger platform to now a native coin present on the official Tron Mainnet. If you think launching the independent MainNet is all Tron wanted to achieve, you are mistaken.

The aim is towards mass adoption as well as creating a decentralized web. Yeah, it is a  fact that in the past weeks TRX has experienced price declines, but currently, the cryptocurrency is riding 5.37% hike against the USD in the last 24 hours (remember most of the other top coins including Bitcoin are in red).

It’s also continued succeeding in attaining quality listings such as the Bittrex (to name one of the most recent ones). Therefore, it seems as every step TRON makes is a sign of progress to make the decentralized web a reality.

How TRON (TRX) is Making Mass Adoption a Reality

The primary objective for TRON (TRX) is to create a decentralized web which will be a representation of the internet’s next generation. Therefore, in making that a reality, the largest file-sharing platform, BitTorrent that has over 100M global…

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Altcoins

Hyperion-Stellar Partnership Finalized — Support For Stellar’s Crypto Assets Trade About To Arrive

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Stellar
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Hyperion and Stellar: A new partnership

According to a recent announcement by Global Blockchain Technologies Corp., it would seem that the known crypto exchange Hyperion has finally made an agreement with Stellar (XLM). The new partnership is to allow Stellar’s own crypto assets to be traded on Hyperion’s platform. This move is expected to significantly impact Stellar’s price and spread awareness of the coin and its goal even further.

Hyperion uses an alternative trading system (ATS), which was licensed by the SEC. As a part of this arrangement, previously attained via investment in DBOT (Delaware Board of Trade), Hyperion has permission to also operate as a broker-dealer. It is also expected to become North America’s first advanced security token exchange.

As many are already aware of, Stellar is a trading protocol that is used for issuing, exchanging, and transferring digital assets. It works with several other cryptocurrencies, but also with fiat currencies like the USD. Additionally, Stellar also works even with some commodity assets, like gold.

Stellar’s goal is similar to that of Ripple, at least when it comes to enabling faster and better cross-border transactions. While Ripple focuses on providing its services to banks and financial institutions, Stellar aims to provide these services to individual investors. Thanks to this, Stellar has received a lot of attention and praise from individual investors, as the general interest in cryptocurrencies grew.

Why is this partnership important?

By joining Hyperion’s…

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Bitcoin

Bitcoin Volume Improves — Is A New Bull Run About To Start?

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Bitcoin volume
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After more than half a year of price drops and losses in value, Bitcoin’s price has finally demonstrated signs of stability. For weeks, Bitcoin managed to remain above the price of $6,550 per coin, which was followed by a small price surge that has allowed the coin to reach $6,600.

Not only that, but Bitcoin’s volume also saw a 12% increase that has taken it from $3.2 billion to $3.6 billion according to CoinMarketCap. While this state of the market did not include all the altcoins, with some of them even experiencing losses, the situation regarding Bitcoin did look promising.

However, the new situation has changed that, as both investors and analysts woke up to the news of crypto prices going down.

Bitcoin volume predictions

Cryptocurrency analysts around the world have been predicting that the recently-balanced situation regarding Bitcoin and many altcoins will not last. While some believed that Bitcoin volume will go up, others have been claiming that it will drop once again, as it has finally happened.

At the moment, Bitcoin has managed to drop below what was recently believed to be its bottom, with a new price being at $6,297. Instead of reaching milestones such as $6,800, and then $7,000 mark as many have hoped, BTC actually dropped by around 6%.

For a while, Bitcoin has been showing signs that it is ready to grow once more. However, the trouble once again lies with the…

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