Bitfinex, an exchange that becomes popular because of its opaque banking arrangement, had started requiring its users to pass their details regarding taxes. The platform is registered in British Virgin Islands (BVI), a prominent tax haven, would retain this data and have it imparted with the authorities in the jurisdictions of its customers.

In the email released for the users, Bitfinex had outlined its new KYC policy. Not content with the idea of knowing their customers’ location and identity, it now wants to take the tax details that customers have. It already begins and this accord with the local laws in BVI, where the exchange company is registered.

The tax data gathering of the platform, however, will not stop their operation there. It also noted that the government of BVI might then exchange those gathered data with the tax authorities of a certain country of residence, where the customers are situated.

Just a few months earlier, the exchange company did not even enforce the basic KYC for the users. It is now disappeared from being the convenient major exchange company, as this tax sharing policy enacted by the likes of the Bittrex or Coinbase. After the new policy of Bitfinex is called out on Twitter, the company made their clarification about their position on the issue and explained that:

“We haven’t sent this note the entire users. We had deliberately targeted only the users, which we believe to have an obligation toward self-disclosing. But if the users haven’t received this message from our company, they don’t need to self-certify anything to us right this time.”

There seems to be an implication that, however, all of its users will eventually have an obligation to comply with the new policy. There is a prediction that many of the customers of this exchange may have the will to boycott this platform and take all their trading in another exchange. Because of the increasing regulation and policies, together with the required transparency being inherited to the blockchain technology, the users of crypto have already become among the heavily investigated investors and traders in the whole world.

Many of the users felt that the new regulation, regardless of the legal basis, is a pace too far. Come from the exchange company’s similarity with operating of tax havens and the failure to fully audit the Tether stablecoin, an irony of Bitfinex now wants to review its customers are not a loss.