Bitfinex deposits restarted after "improvements"
After about a week and a half of blocking new deposits to the platform, the Bitfinex cryptocurrency exchange has announced that customers can now begin funding their accounts again. The exchange warns, however, that customers will need to be prepared to be patient with the deposits.
Bitfinex announced in a blog post that it has lifted the suspension after introducing a "new, improved and increasingly resilient" system. The most notable "improvement" is the introduction of increase Know-Your-Customer (KYC) protocols on the platform. These protocols will change how the deposit process occurs and will result in delays of up to 48 hours for new deposits.
Clients now have to submit a request to the exchange to make a deposit. The request will be reviewed by the exchange - which is where the 48 delay comes in - and will either be approved or denied. If it is approved, the customer will receive instructions on how to make a deposit, which will be "specific to the individual's transaction."
In addition, deposits must be at least $10,000 - a condition the exchange asserts was always in place. Once the deposit is approved and the transaction is initiated, it could take up to ten days for the money to be reflected in the user's account.
According to Bitfinex, this is allegedly a step forward, although most users will disagree. In its blog post, the exchange stated, "We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters."
Given that cryptocurrency exchanges are volatile, this certainly seems to be a huge shot in the foot for Bitfinex. Having to wait up to 12 days to see an account funded renders virtually useless any possible trading activity that could have otherwise capitalized on market prices.