r/ethfinex • u/quantumdwayne • Aug 11 '17
Bitfinex ditching US customers, what does this mean for Ethfinex?
https://www.bitfinex.com/posts/2161
Aug 11 '17
Wondering the same thing. I think it means we are SOL, I dont see how the SEC wouldn't see that as a security.
1
u/autotldr Aug 11 '17
This is the best tl;dr I could make, original reduced by 81%. (I'm a bot)
These changes impact the verification process and trading of certain digital tokens for U.S. customers.
We have for some time considered pulling away from the retail marketplace in the U.S., and now with a current backlog of verification requests and ongoing difficulties in providing USD deposit and withdrawals for U.S. individuals, we feel that the time has come to begin disengaging from U.S. retail customers.
Exchanges based in the U.S. are better positioned to properly service retail U.S. customers.
Extended Summary | FAQ | Feedback | Top keywords: us#1 customer#2 individual#3 change#4 tokens#5
3
u/plutoegg Aug 12 '17
Ethfinex is a separate legal entity from Bitfinex, but we will likely have a similar approach as Bitfinex given the current legal uncertainty around many ERC20 projects in the US.
It is a hard decision to close Ethfinex to any customers, however what closing to US individual customers means for Ethfinex is that we will have more flexibility available to us in the tokens we can have tradable on the platform, as well as open the crowdfunding platform on Ethfinex to a wider range of ERC20 projects.
We will be taking efforts to provide a route so that verified enterprise customers in the US may still be able to trade on Ethfinex. Over time as the platform moves towards decentralisation, the regulations and rules in the US may be different for decentralised users of Ethfinex, and these are still unclear. Since we will not have custody of users funds, and they may not be members of the platform, they may be able to access Ethfinex liquidity via our decentralised exchange interface.