Connect with us

Blogs

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

Published

on

Bitfinex
READ LATER - DOWNLOAD THIS POST AS PDF

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.

For the latest cryptocurrency news, join our Telegram!

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.

Image courtesy of Pexels

Blogs

How is the Crypto Market Changing?

Published

on

crypto market
READ LATER - DOWNLOAD THIS POST AS PDF

It has been around a month and a half since the start of 2019, and there are already some pretty obvious changes in the way the crypto market operates, especially when compared to the last year. Early 2018 was almost a complete opposite. The previous year started with cryptocurrencies at their strongest, only to see them crashing down after a few weeks. Back then, the ICO model was still quite strong, and so was the hype surrounding the crypto space. New investors kept entering the space, and new startups emerged with their tokens ready to be sold.

As the year progressed, things started to change. The prices continued to drop, the ICO model went down from around $1.4 billion in raised funds at the beginning of the year to only $100 million in the last month.

The ICO model lost investors’ trust, as many of the projects turned out to be either too weak to survive after the crypto winter struck, or scams which tricked investors out of their money and disappeared. Not to mention that the increase in ICOs popularity attracted the regulators who cracked down on them pretty hard, especially in the US.

With all of that happening, it is of a small surprise that the investors started giving up on ICOs, especially with the constant drops in prices which saw even the largest coins…

Continue Reading

Blogs

Understanding the Uses of Different Types Of Cryptocurrencies

Published

on

cryptocurrencies
READ LATER - DOWNLOAD THIS POST AS PDF

Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

Continue Reading

Blogs

New DoJ Ruling May Cripple Gambling dApps

Published

on

gambling dApps
READ LATER - DOWNLOAD THIS POST AS PDF

A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

Continue Reading

Elite