As per reports, the company, Bitfinex removed its $10,000 minimum equity requirement. Reports suggest that the firm does so to start trading on cryptocurrency exchange. With this move, the company enables a wide range of investors to participate.
Based in the British Virgin Islands, Bitfinex says the move is to meet overwhelming demand of cryptocurrency from various traders.
However, if a trader owns lenders more than the worth of their tokens, Bitfinex has some reserved rights. Bitfinex reserves the right to take over, seize and assume all liabilities with collaterals to dispose of positions. It is a warning from Bitfinex to guide the traders within the boundary.
CEO of Bitfinex comments on Bitfinex’s recent move
The CEO of Bitfinex, Jean Louis van der Velde comments on the move on Tuesday. He says that they cannot ignore the increasing demands and request from their customers simply. According to him, there are an incredible number of requests coming to access trade on Bitfinex. He says that the requests that they receive are from a wider unit than their customer base.
Jean further says that for the last six months, they are working on their platform to get it ready. He explains that they are working hard on their project to meet the huge demand of customers. The CEO at Bitfinex assured that they are in a position to open Bitfinex to wider audiences. Further, he says that they are dropping their minimum equity requirement. According to him, it is the traders, who will set the limit now.
The statements of Jean do not mean unlimited margin borrowing. As per terms and conditions on the website of Bitfinex, it explains the scenario in detail. It says that the customers can finance a maximum of 70 percent of though the value of digital tokens.
Bitfinex Upgrades some areas of its client services
Reports suggest Bitfinex is ready to migrate the operations of the exchange. It will do so in a self-designed and dedicated server having premium hardware. It is to ensure advance security and low latency.
The company, Bitfinex, also upgrades some areas of client services. Such areas are automated response for the common queries and also quick issue resolution. It also includes Know-your-customer or (KYC) portals. The additional information is written on the tokens of the exchange.
Bitfinex goes through a period of controversy since its connection with Tether. On the other hand, Tether struggles to provide proof of its reserves backing stablecoin of USDT. The firm reportedly ended up saying that they cannot back the token with fiat alone.
Bitfinex scrambles to maintain consistent bank relationships
Bitfinex and Tether both scramble to maintain a consistent relationship with the bank. Initially, the company Wells Fargo stopped to serve the two companies in the year 2017. As a result, the two companies are struggling to maintain banking relationships.
However, Bitfinex and Tether, both had accounts at Noble Bank in Puerto Rico. At the end of October 2018, the two companies ended up losing it. Reports suggest they ended up as the customers of Deltec, a Bahamas based bank.
Reportedly, the clients of Bitfinex complained in October that they had issues in withdrawing their fund.