Bitfinex, a leading virtual currency exchange, has scrapped off its minimum equity threshold to allow more traders to use the exchange.
The virtual currency exchange had for a long time maintained that anyone looking to trade on the platform must have at least 10 thousand U.S dollars as minimum equity. Bitfinex believes that the minimum equity prevented traders from taking advantage of its professional offerings. The exchange cited continued demand from traders who were unable to meet the $10K minimum equity.
In a post that the virtual currency exchange posted on its official blog, the exchange has been preparing for this day by “working hard to ready” the platform.
Jean-Louis Van der Velde, CEO, Bitfinex said:
We simply could not ignore the increasing level of requests for access to trade on Bitfinex from a wider cohort than our traditional customer base. For the last six months, we have been working hard to ready our platform for a new wave of customer accounts and are now in a position to open Bitfinex to a wider audience.
The CEO added that the removal of the minimum equity limit allows traders to set their own limits. However, the removal of the limits does not introduce unlimited borrowing.
The virtual currency exchange has not changed its terms and conditions. A section of these conditions still indicates that customers are only allowed to finance up to a maximum of 70 percent of the value of cryptocurrencies they buy on Bitfinex.
Additionally, the terms and conditions page indicates that the virtual currency exchange will take over or “assume all of your liabilities and collateral and to dispose of one or more of your positions.” This will happen when tokens owned by a trader are worth less of what the trader owes lenders.
Do you think the virtual currency exchange will now attract traders?
You may also be interested in: