U.S. Corporate Customers Barred From Bitfinex’s Margin Markets?
U.S. Corporate Customers Barred From Bitfinex’s Margin Markets
Multiple concerned U.S. corporate customers of Bitfinex have posted on Reddit after discovering that they were unable to access the exchange’s margin trading services. Although Bitfinex has previously indicated that it would no longer allow U.S individuals to access the exchange’s services, Bitfinex’s support portal currently states that the restrictions do not affect U.S. corporate customers.
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Bitfinex Restricts U.S. Corporate Account Holders From Accessing Margin Markets
In recent days, several Redditors claiming to be U.S.-based corporate customers of Bitfinex have complained that they have suddenly found themselves unable to access the exchange’s margin services.
Last year, Bitfinex announced that it would terminate its services to U.S. retail customers in November. However, the company assured corporate customers that “the restriction affects individuals accounts only” – as currently stated by the FAQ section of Bitfinex’s support portal.
Margin Traders Left Unable to Close Positions
One Redditor posted “We’ve had a corporate account with Bitfinex since early 2017 and [are] approved for both exchange, margin, and funding. […] We’ve been making 6-figure trades on margin and currently have 2 margin positions open. On Feb 7th, […] we were locked out of margin trading. No explanation or warning of why our account can’t trade on margin. Worst yet, we can’t manage our margin positions. Not good in this very volatile market. We’ve received a couple of liquidation warning emails as the market dived down yesterday. We sent a support ticket […] and probably over 7 emails. No response from Bitfinex. It appears that they haven’t even opened any of the emails.”
Later that day, a Bitfinex representative called “bill_bfx” contacted the Redditor, stating that the issue had been “forwarded to the team to resolve for you.” Bill_bfx stated that “a US corporate customer […] should not be using margin trading,” however, noted that “if you have open positions it is not acceptable to block you from closing them.”
The Redditor acknowledged the response and stated he would update the thread if his issue was resolved. As of this writing, no indication has been made that the situation has been resolved, despite bill_bfx responding to the Redditor four days ago.
Corporate Customers Seemingly Caught Unaware
Another Redditor posted “I’ve been lending on Bitfinex for a while. Earlier today, the API responded that US users are no longer allowed to take or lend any currency denomination […] I understand that US retail customers cannot use it but I believe the policy did not apply to corporate customers. Has there been a recent change in policy? Will it be permanent or is this a temporary measure?”
As of this writing, the second Redditor has not received a response from Bitfinex, despite directly questioning bill_bfx about the matter on a different thread. Though Bill_bfx did not respond to the Redditor’s query, however, a day later, Bill_bfx did find time to post a sarcastic response to a trollish comment on the same thread.
Do you think that more exchanges will move to restrict access from U.S. customers? Share your thoughts in the comments section below!
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