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Bitfinex bans US corporate customers to access margin trading services

Feb 14, 2018 Posted /  3547 Views

Bitfinex bans US corporate customers to access margin trading services

Reddit was flooded with concerns from the US corporate customers of Bitfinex. There were several posts that exclaimed that the exchange has barred them from margin trading services. Bitfinex had earlier signalled that it would not allow US customers to access the exchange’s services, however, at present the support portal indicated that the restrictions do not affect US corporate customers.

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Many account holders came forward and registered their complaints on Reddit that they have discovered recently that they were no longer able to access Bitfinex services of margin markets. Although, the exchange had made a prior announcement about it in 2017 where it said that it would terminate its services to US retail customers. Nonetheless, the company afterwards assured its customers that “the restriction affects individuals accounts only.” This is stated in the current FAQ section of Bitfinex’s support portal.

Margin Trading ban

Meanwhile, a Reddit user 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.”

As the posts started flooding in, later in the day, a Bitfinex representative called “bill_bfx” contacted the Redditor and remarked that his complaint has been forwarded to the customer service team and they will resolve the issue. Bill_bfx also was found commenting on the issue- “a US corporate customer […] should not be using margin trading,” Nonetheless, he said that he noted the issue and “if you have open positions it is not acceptable to block you from closing them.”

Afterwards, the Redditor appropriated the response and said he would update the thread if the issue were resolved soon. However, there are no further reports in the media or updation on the Reddit post that indicates that situation has been taken care off. It is noteworthy that bill_bfx had responded to the Redditor four days back.

Customers are not getting response

There was yet another post from a Redditor that stated “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?”

Till now the second Redditor has not also found any response from Bitfinex, regardless of straightforwardly inquiring bill_bfx about the matter on a different thread. Though Bill_bfx did not respond to the Redditor’s query, nonetheless, a day later, Bill_bfx did find time to post a sardonic revert to the trolling comment on the same thread.

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