The world’s largest currency exchange, the Bitfinex, has been ordered by a Federal District Court judge to produce Tether Loan Documents by a few months. This means that anyone who buys or sells Tether from the platform will receive what they are paying for in a timely fashion. However, this order will also be applied to all accounts of any other parties involved with purchasing or selling Tethers.
For example, if a trader or someone who buys Tethers on the Bitfinex had an account and had purchased a certain amount of Tethers, then they will be liable for paying taxes on that purchase. Additionally, if they had a debit card and were using it in conjunction with a credit card, then they would be responsible for paying the taxes on both. Because of this, the FTC and other authorities want to protect the consumer from being ripped off and they want to ensure that the system is as transparent as possible. Therefore, they are ordering the company to produce its documentation to anyone who requests it.
The order will not apply to purchases made on the Bitfinex platform, which is only applicable to transactions between its customers. It also does not affect the trading that takes place in the main marketplace. However, it could impact other places like the secondary marketplace where people can purchase and sell things for Tethers. Because of this, the FTC wants to make sure that these people can be protected from fraud and ensure that they are not taken advantage of.
Additionally, the FTC wants to make sure that the Bitfinex does not continue to allow the use of this type of financing until they have all of their documentation. Right now, the site is asking for an extension because of the extensive amount of paperwork that is required. While they do have this documentation, they need to get their hands on it before the end of the year. This means that they are going to have to make sure that they produce everything on time, otherwise they risk the entire business being shut down.
Since the FTC wants to ensure that Tethers are not used as a method for defrauding consumers, it has asked the company to stop the sales on the trading platform until all of its documentation has been produced. The order does not actually require that they close the site. However, the company has agreed to close all accounts that do not have documentation and remove all funds from those accounts, which is something that it has promised to do. in the past.
In short, while this order will not apply to all transactions involving Tethers, it does mean that any person who has ever bought or sold them on the Bitfinex should expect their documents to be available by the end of the year. They also have to produce all documentation related to their trading activity to ensure that their customers are not being taken advantage of. This is especially important since the company has not been forthcoming with this information for some time now.
