Bitfinex to give some accounts data to BVI government
British Virgin Islands demand to see the data of certain accounts of Bitfinex exchange. The organization is registered in this overseas territory. This can potentially lead to a chain of events where the massive amount of user data becomes available to governmental agencies.
Bitfinex is now requiring users to give their tax information so that it can send it to BVI which will exchange it with your country's tax authorities.
— Whalepool (@whalepool) May 17, 2018
We strongly disavow.
If you also disagree with this decision, peacefully protest it by withdrawing your money from Bitfinex pic.twitter.com/VkYchg3sqg
The reason for this assumption is that Virgin Islands have agreements with several countries on data exchange to counter tax evasion. The list includes United Kingdom, United States, France, Germany, Netherlands, Australia, New Zealand, China, Japan, South Korea and Russia (since December 21 last year).
The exchange management has additionally explained that not all accounts were of interest to the BVI government: in case a user does not receive a letter regarding this matter, his data is not required.
Other BVI-based organizations might also fall under scrutiny if the government decides to do so. At the press time, there are no indications of such plans. The actual governmental interest is usually caused by corporate-level entities operating in their economic area.
Small offshore states are attractive for cryptocurrency organizations, as witnessed by the crypto business news connected with Malta, Gibraltar and Bermudas.