Cryptocurrency exchange BitForex has announced that it will resume processing withdrawals after a five-month hiatus due to an investigation by the Jiangsu Province police in China. The exchange’s team was detained and investigated on Feb. 23, leading to the suspension of all operations and services except for withdrawals.
During the outage, users were unable to access their funds, leading to concerns and warnings from regulators. The exchange experienced a significant outflow of $57 million, prompting the need for further investigation and action by authorities.
In a recent post, BitForex stated that clients will be able to withdraw their assets once they complete the required know-your-customer (KYC) verification. However, trading and deposits will remain suspended until further notice.
The exchange emphasized that returning assets to users is a top priority, and once this process is complete, BitForex will undergo a comprehensive rectification process. This means that all operations will cease after withdrawals are processed, indicating a significant shift in the exchange’s future plans.
The incident involving BitForex highlights the regulatory challenges faced by cryptocurrency exchanges, especially in regions like China where authorities have taken a strong stance against digital assets. The crackdown on exchanges and related activities underscores the need for proper compliance and transparency within the industry.
As the cryptocurrency market continues to evolve and attract more attention from regulators, exchanges must adapt to changing regulatory environments to ensure the safety and security of their users’ funds. The case of BitForex serves as a reminder of the risks associated with operating in the crypto space and the importance of adhering to regulatory requirements.
Overall, the resumption of withdrawals by BitForex is a positive development for users who have been waiting to access their funds. However, the future of the exchange remains uncertain as it embarks on a period of comprehensive rectification and compliance efforts. Users will need to stay informed about any updates from BitForex regarding the resumption of full services and the outcome of the ongoing investigation by Chinese authorities.