Bitfinex reopens account registrations – but with a catch

Janica San Juan 14 January 2018 NEWS

in-text-bitfinex

All new accounts on Bitfinex will have to comply with additional requirements.

Bitfinex has announced a reopening of its new user accounts registration feature, but the provision comes with a new list of requirements.

In the announcement posted on its site, the platform’s operators explain that the closure aims to preserve its quality of service for the long-term user base.

Bitfinex closed its doors to new registrations in December last year, posting an explanatory message on the signup page. It explained that new account registrations had to be halted temporarily due to extraordinary demand.

What’s the catch?

The reopening announcement includes a disclaimer for new crypto traders, explaining that the platform’s target customers are regional exchanges and pro traders. For this reason, it suggests that new customers start out on other sites and join Bitfinex later.

In order to cater for this adjustment, Bitfinex has a new equity placement requirement for all new registrations. All new accounts created on the site after 1 January 2018 have to place a deposit of US$10,000 or its equivalent in digital currency.

Only after reaching this minimum will any new account be fully activated. After reaching this requirement, the account equity no longer has to be maintained.

It’s an industry-wide problem

The recent upsurge of activity on the cryptocurrency scene has seen major exchange platforms in the industry swamped. The unexpected influx of users on these platforms is taking a toll on their infrastructure.

As a result, some have had to temporarily close down their registration portals.

Binance is currently reporting more than 250,000 new users on a daily basis while Coinbase has often seen more than 100,000 new registrations per day. Kraken is reporting more than 50,000 daily registrations.

Bittrex was among the first to stop onboarding new account registrations. An alert posted on its site in December said that the registration rate over the previous few weeks had been overwhelming.

Another exchange site, Coinsmarkets, has been offline for about a week now after posting a message that it would be switching its servers.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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