Crypto Exchange Bitfinex Aims to Strengthen its KYC Processes and Guidelines

Digital asset exchange Bitfinex has reportedly been beefing up its know your customer (KYC) requirements and guidelines. The crypto trading platform sent an email to its verified users requesting additional identifying information.

The purpose of Bitfinex’s email is to strengthen its due-diligence processes and to ensure that all of its users’ accounts are at “the same level” of compliance.

Verified Bitfinex account holders were reportedly asked to share information related to the source or origin of funds and how the user was planning to use them, in addition to the users’ proof of address, by providing their utility bill or receipts to prove they actually live where they claim.

Bitfinex CTO Paolo Ardoino confirmed that the exchange is always trying to enhance its existing compliance procedures.

He noted:

“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.”

Ardoino said that all user information is managed in a secure and confidential manner.

It’s currently unclear whether this recent strengthening of know-your-customer (KYC) requirements by the exchange has been motivated by a certain event. It’s worth noting that Bitfinex’s operations (along with sister firm Tether Ltd) have been extensively investigated by the New York Attorney General (NYAG) since April of this year.

Bitfinex’s management has been trying to halt this investigation, as it claims that the firm never provided services to New York residents. The exchange’s terms of service mention that all users need to be foreign entities.

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