Bitfinex asks its users to submit their tax details
Bitfinex, established in 2012, is a digital asset trading platform, boasts of being one of those first professional platforms to offers services to cryptocurrency trader. Bitfinex also deals in providing peer-to-peer financing, an over the counter market and margin trading for a wide variety of digital assets.
Bitfinex has been quite lenient when it comes to enforcing KYC(Know Your Customer) guidelines on its users. The Bitfinex website states that one does not need to be verified to start trading. Verification is mandatory only for users who wish to withdraw or deposit fiat currencies. The platform claims that it follows standardized compliance measures for anti-money laundering and counter-terrorism financing.
Bitfinex is now requiring users to give their tax information so that it can send it to BVI which will exchange it with your country's tax authorities.
We strongly disavow.
If you also disagree with this decision, peacefully protest it by withdrawing your money from Bitfinex pic.twitter.com/VkYchg3sqg
— Whalepool (@whalepool) May 17, 2018
Bitfinex has pulled up a surprise for its customers by asking them to submit their tax details. The platform may retain the tax-related information and share it with relevant tax authorities if need be. It has stirred up a hornet's nest. An email was sent to some of the users of the platform stating new KYC guidelines which they need to abide by. Bitfinex is registered in the British Virgin Islands and is bound to follow local regulations to stay compliant.
We have not sent this message to all users. We have deliberately targeted users that we believe have an obligation to self-disclose. If a user has _not_ received a message from us, she need _not_ self-certify anything to us at this time.
— Bitfinex (@bitfinex) May 17, 2018
When Bitfinex new KYC policy was made public on Twitter, the company stated it position by saying that email was sent to those users who had an obligation to self-disclose. There is a brewing protest and some of the users might start boycotting the platform.
Cryptocurrency traders have always been on the radar of the tax authorities. It seems that even tax havens like the British Virgin Islands would no longer offer solace to investors who want to evade taxes. Tax compliance is the only way to check graft and money laundering activities which are quite rampant in all tax havens.
Image via Medium