Bittrex and Bitfinex require users to provide additional personal data
Two cryptocurrency exchanges, apparently, began to take a more serious approach to verify customers, writes The Block.
Bitfinex Exchange is actively blocking the accounts of some users and requires to provide additional personal data. Two days ago, one user told Reddit that the exchange in an email asked him to provide "a clear and detailed explanation ... of his activities and goals." Bitfinex also asked to "scan a valid state identification card and take a photo with an identity card." Bitfinex's request came a few weeks after the New York prosecutor’s office accused the stock exchange of hiding the loss of $ 850 million and illegal customer service in New York. Bitfinex technical director Paolo Arduino stated that the stock exchange checked accounts before the prosecution began investigating, noting that they “always work diligently to improve the monitoring process.” Arduino added that the monitoring is aimed at combating money laundering, suspicious wallets, and users who live in “prohibited jurisdictions”.
“We have always performed these procedures since the very beginning of Bitfinex, and we are constantly working to improve control, and this goes far beyond the investigation of the prosecutor’s office in New York,” said Arduino. Nevertheless, the prosecutor's office has reason to believe that several New York traders make transactions on the exchange, despite the statements of Bitfinex that they do not serve New York clients.
Bittrex also introduces a more detailed KYC procedure, prompting users to complete a form with additional personal data, which includes proof of employment or retirement income, as well as verification of transactions. Bittrex recently received a subpoena from the New York Department of Financial Services, which rejected the exchange's application for BitLicence in New York. According to the Department, Bittrex provided its services to citizens of countries that are under US sanctions (the exchange itself denies the veracity of this statement).