Hong Kong-based digital currency exchange Bitfinex has announced several updates to their policies in last week’s Change Log.
The most important one being the new Law Enforcement Request Policy, which states that Bitfinex only complies with law enforcement request that are accompanied by legal documents such as subpoenas and search warrants.
The release states:
“We review each order to determine that it has valid legal basis, and we tailor any response to ensure that we provide only the data to which law enforcement is entitled.”
The new policy also states that Bitfinex reserves the right to make “disclosures” in order to shield itself from legal risks. Bitfinex says that various law enforcement agencies around the world have contacted the exchange in the past, and that the most commonly-requested information on clients is their identity documents and trading activities.
“We reserve the right to block access for any user accessing Bitfinex via a proxy service intending to conceal originating identity. This includes access via the Tor anonymity network.”
Another very important update relates to the way the exchange stores client data. According to the release, client information may be stored in multiple jurisdictions, which means that law enforcement agencies and foreign regulators can access client information according to the laws of each particular jurisdiction.
“You need to be aware that the privacy standards of those countries may be lower than those of the jurisdiction in which you reside.“
The new updates did not clarify in which countries Bitfinex currently stores sensitive client data.
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