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Bitfinex: “We are required to report certain account info to the BVI Govt.”

Arjun B



Bitfinex: "We are required to report certain account info to the BVI Govt."
source : Hacker Noon

On 17th May, the fourth largest cryptocurrency trading platform, Bitfinex issued a statement to their users explaining that the users need to reveal their tax information, which might be shared with the government. Bitfinex has a total market capitalization of about $686 million.

Owned and operated by iFinex Inc, Bitfinex is registered in the British Virgin Islands [BVI] under BVI law. According to the statement, they are obliged to report specific information if the government needs it.

Bitfinex has to provide information about their clients to the tax authorities in concordance with the state’s tax laws, based on the US Foreign Account Tax Compliance Act [FATCA], the Organization for Economic Co-operation, and Development Common Reporting Standard [CRS].

New York Attorney General, Eric T. Schneiderman has included Bitfinex in the list of Virtual Markets Integrity Initiative as part of an inquiry into the policies and practices of crypto trading platforms. The exchange was requested to provide information on operations, internal controls, registration information, and other key factors to protect cryptocurrency investors and clients of the exchange.

The deadline for the users of Bitfinex to submit the information is on 24th May. The provided information should fill-in the self-certification forms depending on whether they are either individuals, firms or entities. The users who are residents or citizens of the United States of America, an entity organized in the United States or an entity with at least one 25%+ ownership who is a US citizen have to provide tax information by completing the appropriate FATCA form or CRS form, to prevent money laundering or tax evasion.

Whalepool tweeted:

“We completely disapprove that Bitfinex has requested their clients to provide their tax information so that it can be shared with BVI which will be disclosed with the user’s country tax authorities. If you also disagree with our decision, peacefully protest it by withdrawing your money from Bitfinex Exchange”

In response to Whalepool, Bitfinex tweeted:

“We have not sent this message to all clients. We have deliberately targeted clients that we believe have an obligation to self-disclose. If a client has not received a message from us, they need not self-certify anything to us at this time.”

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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand



Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.

The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.

Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”

At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,

“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”

The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.

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