BitForex will reopen for withdrawals after a five-month suspension due to a police investigation in Jiangsu Province, China. Trading and deposits remain suspended.
Points
- BitForex to reopen for withdrawals after a five-month suspension.
- Trading and deposits remain suspended.
- The platform was shut down following a police investigation in China.
Cryptocurrency exchange BitForex announced it will reopen for withdrawals following a five-month suspension caused by an investigation by the Jiangsu Province police in China. The exchange stated in an X post that while trading and deposits will remain suspended, users who complete know-your-customer （KYC） verification will be able to withdraw their funds.
The platform went offline on February 23, 2024, after experiencing a $57 million outflow. User withdrawals and access to the site were blocked, prompting a warning from Hong Kong’s Securities and Futures Commission （SFC） about the exchange. The BitForex team was detained and investigated by the Jiangsu Province police, leading to the platform’s inaccessibility.
The announcement marks a significant step towards resolving the issues that led to the shutdown. BitForex emphasized its commitment to returning assets to users and undergoing a comprehensive rectification process.
Cointelegraph
解説
- Regulatory Compliance: The reopening of withdrawals signifies BitForex’s efforts to comply with regulatory requirements and address the issues that led to the investigation. Ensuring regulatory compliance is essential for rebuilding trust with users and authorities.
- User Trust and Security: Allowing withdrawals while keeping trading and deposits suspended demonstrates a cautious approach to restoring operations. This strategy helps prioritize user trust and asset security, which are critical for the platform’s long-term viability.
- Market Impact: The ability to resume withdrawals can positively impact the market perception of BitForex. Addressing user concerns and regulatory issues head-on can help restore confidence and potentially attract new users once full operations are resumed.