Bitfinex’s derivatives platform is in the news today after it announced the launch of its perpetual contracts for IOTA, Chainlink, and Uniswap. Each of these contracts will offer users maximum leverage of up to 100x, leverage that is typical of such contracts and they will be settled in Tether (USDt) tokens.
Interestingly, according to a press release shared with AMBCrypto, Bitfinex’s latest perpetual contracts offerings will not be available in all countries. In fact, the offerings will be exclusive to users who have been verified by approved Know-Your-Customer (KYC) protocols. This implies that the exchange, often accused of being lax with due diligence, is taking KYC norms very seriously.
This isn’t the first time, however, as Bitfinex had recently clarified that only verified users who have completed KYC checks could withdraw from Bitfinex Borrow, its peer-to-peer lending platform. When it comes to the exchange though, Bitfinex has said that verification is only required for users who want to deposit or withdraw fiat currencies, for selected utility and stablecoins, and for users who wish to speed up the deposit process.
The verification process for Bitfinex is a standardized compliance measure for AML, KYC, and Counter-terrorism financing (CTF) regulations. However, customers of Bitfinex who deposit, trade, or withdraw most cryptocurrencies are “not required” to have their accounts verified.
Meanwhile, U.S customers of Bitfinex will not be able to benefit from these perpetual contract services. Back in 2017, Bitfinex had discontinued services for American users after many cited difficulties obtaining banking services.
Addressing the addition of IOTA, Chainlink, and Uniswap to the portfolio of perpetual swaps, CTO at Bitfinex Derivatives, Paolo Ardoino, said,
“We anticipate great interest in these products, particularly among funds and professional investors for hedging purposes and to manage risk.”
It must be noted, however, that these are not the first contracts of this kind as Bitfinex has several contracts for other cryptocurrencies such as EOS, Litecoin, and Polkadot. Other than cryptocurrencies, there are also perpetual contracts for Silver, which was reportedly launched on 26 October. Bitfinex also offers perpetual contracts for Tether Gold, the stablecoin pegged by gold.
The exchange has not disclosed why it chose the aforementioned cryptocurrencies. However, these cryptos have been doing well on the charts lately.
Chainlink’s prices have climbed from $11 to over $14 in a matter of days. Meanwhile, IOTA’s partnerships in the automobile, manufacturing, and insurance industries could pay off the coin’s value in the near-term. Finally, Uniswap surged from its previous lows of around $1.75 to $3.48 at the time of writing, growing by nearly 80% this month.
