We want to address the rumor circulating regarding the U.S. Commodity Futures Trading Commission (CFTC) inquiries about our business operations and the potential implications of the CFTC’s order regarding Coinflip, Inc.
First, as of this posting, we have not been contacted by the CFTC and have, in fact, proactively reached out to them. We are happy to discuss our platform and business operations with any interested regulator.
Second, there appears to be some concern that the ‘swap’ nature of our trading platform puts us within the CFTC’s jurisdiction with respect to our U.S. customers. This may be true if Bitfinex were actually a swaps or derivatives trading platform. In point of fact, Bitfinex is not a swaps trading platform. The ‘swap’ terminology was used in the early days of Bitfinex when we didn't fully consider the implications of using that word. Bitfinex is an integrated exchange and margin trading platform with margin liquidity being sourced on a peer-to-peer basis. Furthermore, because margin positions can also be ‘claimed’, they should not be construed as another kind of non-deliverable derivative product. We have been considering a site-wide change of terminology to more closely reflect our actual product offering. Clearly, the time has come for us to prioritize those refinements; expect to start seeing these changes on our site very soon.
Finally, insofar as the CFTC is claiming jurisdiction over the spot trading of digital currencies, it may be that all bitcoin exchanges, domestic and foreign, serving U.S. customers are equally affected. The exchange industry as a whole should seek further clarification from the CFTC on the regulatory implications of their ‘bitcoin is a commodity’ assertion. If the CFTC is offering a comprehensive and uniform solution for bitcoin exchange regulation in the U.S., then we welcome that development and would look to comply along with the rest of the exchange industry. If, however, it represents yet another layer of compliance on top of existing and emerging state and federal rules and regulations, then we believe that the industry’s cost of doing business with U.S. customers will continue to increase, stifling innovation and competition in what is still a fledgling industry. It is possible that neither of these interpretations is correct. Further clarification is required.
In any case, our customers may rest assured that Bitfinex is being proactive in educating regulators on the nature of our platform and operations. We have co-operated with international and domestic regulators and law enforcement—and we continue to do so—where our assistance is required. We proactively continue to implement best practices to benefit our customers, borrowing from various regulatory regimes around the world. Consequently, we do not expect any interruption in our margin trading operations for our U.S. customers.
Due to financial regulation changes in the State of New York, certain Bitfinex services are no longer available for New York Residents.
Pursuant to Title 23, Chapter I, Part 200 of the New York Codes, Rules and Regulations (the “Regulations”), persons may not engage in Virtual Currency Business Activities (as defined in subsection 200.2(q) of the Regulations) involving New York or New York Residents (as defined in subsection 200.2(h) of the Regulations) without a license issued by the New York Department of Financial Services: the so-called 'BitLicense.' The effective date of the Regulations is June 24th, 2015. Persons already engaging in activities that require a BitLicense must apply for a license by August 8th, 2015.
Bitfinex is not applying for a BitLicense at this time. Accordingly, Bitfinex is modifying account privileges for New York Residents, effective August 8th, 2015.
All New York Residents must withdraw all cryptocurrency balances currently held on Bitfinex by 4:00 pm EDT on August 15, 2015. We strongly encourage New York Residents to specify ‘Locked Withdrawal Addresses’ that we will use to automatically sweep any funds that may be sent to one of your deposit addresses in the future. Failure to set these Locked Withdrawal Addresses will result in the automatic liquidation of future deposits.
As New York Residents may no longer keep cryptocurrency balances, they will no longer have access to the following features on Bitfinex.com.
We understand that this is an inconvenience, but users who do not remove their cryptocurrency holdings from their Bitfinex accounts (or set up a locked withdrawal address) by 4:00 pm EDT on August 15th, 2015 will have their cryptocurrency balances exchanged to USD at market rates. The resulting USD balance will be available in customer accounts for customers to access at any time. Outstanding cryptocurrency swaps will be allowed to expire in due course with resulting free cryptocurrency balance also being subject to automatic liquidation in the absence of a locked withdrawal address.
We sincerely apologize for any inconvenience or issue that this may cause. We continue to monitor the evolving regulatory landscape in New York and elsewhere in an effort to offer superior service, consumer protection and security, and to remain compliant with applicable laws.
There is a Typhoon approaching Taiwan, Typhoon SOUDELOR which on its current track will hit Taiwan on the 7th August.
The Taiwanese government will make an official announcement before 4am on the 7th August (Taiwan time) as to whether the banks will be closed.
If the banks are closed this will affect our deposits and withdrawals by wire.
We have decided to unify our BTC and LTC trading fee schedules into one universal tier structure based upon overall USD value traded in the last 30 days. We have also added additional tiers that reduce the taker rate. This new system will allow traders to get the benefit of their BTC volume when trading LTC and vice versa. Because we are anchoring the tiers to the USD value traded, our customers will find it easier to maintain their tier in fluctuating markets, most notably saving money over the old system in the event of a future price rise. The new rates are as follows:
|USD Value Executed in Last 30 Days||Maker Fee||Taker Fee|
|From $500,000 to $999,999||0.08%||0.20%|
|From $1,000,000 to $2,499,999||0.06%||0.20%|
|From $2,500,000 to $4,999,999||0.04%||0.20%|
|From $5,000,000 to $7,499,999||0.02%||0.20%|
|From $7,500,000 to $9,999,999||0.00%||0.20%|
|From $10,000,000 to $14,999,999||0.00%||0.18%|
|From $15,000,000 to $19,999,999||0.00%||0.16%|
|From $20,000,000 to $24,999,999||0.00%||0.14%|
|From $25,000,000 to $29,999,999||0.00%||0.12%|
Please note that customer tiers are determined on an hourly basis. In the case of the LTC/BTC trading pair, the USD equivalent will be based upon the BTC/USD VWAP (Volume Weighted Average Price) for the day the trading occurred.
This new fee schedule will go into effect on Monday, August 17th at 00:00:00 UTC. We understand that a significant change in our fee methodology will affect some users more than others. As such, we have tried to minimize the overall impact on our traders while still meeting our objective of moving to a unified, USD-based fee schedule that remains very competitive in the marketplace.
Once again, we wish to thank all of our customers for their continued loyalty, which has made Bitfinex the number one platform for BTC/USD liquidity in the world. We look forward to serving the community’s ongoing trading needs as we continue to update and improve our trading platform. As always, we welcome your feedback.
Today we’re happy to release a refreshing overhaul to the Bitfinex interface.
However, you’ll notice that this is not precisely a “redesign”. In fact, the core of the application remains very familiar. Our goal was to smooth out rough edges, tighten a few loose bolts, and make the site more enjoyable to use.
We have exciting design and platform improvements scheduled for the coming weeks, but until then we hope you enjoy this small refresher.
We anticipate your feedback at [email protected].
Feeling nostalgic? The old interface will remain available at https://nostalgia.bitfinex.com until August 6th.
Due to the Dragon Boat Festival Holiday in Taiwan on June 20 all banks will be closed Friday June 19. No deposits or withdrawals by wire will be processed this day.
The Bitfinex team