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

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Bitfinex

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

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

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