On January 14, Bitfinex announced the suspension of service for its customers in Ontario. Furthermore, the exchange instructed Ontario customers to withdraw their funds by March 1.
Bitfinex withdraws from Ontario amid massive push against centralized exchanges
So they will be closing their Ontario user accounts in early March. Clients will have until that date to exit their positions and withdraw funds from the exchange. “Beginning March 1, 2022, Ontario customers will no longer have access to any of the Services. Any Ontario client with open positions in our peer-to-peer financial markets is advised to begin exiting those positions immediately in preparation for March 1, 2022,” in the announcement. own, the exchange stated.
Canadian securities regulators have increased their scrutiny of crypto-custodial exchanges, requiring them to sign up as a stock exchange or exit the respective provincial markets. Home to the largest stock exchange in the country, Ontario’s securities regulator has spearheaded these efforts.
Other policy changes are effective immediately. First, accounts in Ontario that have not been refunded will be closed immediately. Second, Ontario customers who do not have an existing open position in Bitfinex’s peer-to-peer funding markets will immediately lose access to those markets. Finally, margin positions will be immediately unavailable to Ontario customers who do not have open margin positions.
“Important Notice” does not provide a reason for sudden service changes and suspensions.
Bitfinex’s ban on services to Ontario residents could involve regulatory pressure, something Bitfinex is no stranger to. Since 2018, New York attorney general Letitia James has sued Tether and its parent company iFinex (also Bitfinex’s parent company), alleging that Tether loaned Bitfinex $750 million to help the exchange. loss trading. In February of last year, Bitfinex paid back that loan in full. However, in October 2021, Bitfinex was ordered by the Commodity Futures Trading Commission to pay $1.5 million in fines for engaging in illegal transactions and failing to properly sign up as a broker. Traders of Commission Futures among other misdemeanors.
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