In this article we will discuss what exchanges are open for new customers in Jan 2018. During December 2017, many of the cryptocurrency exchanges reported abnormal intake of new users. The major cause for such development was bitcoin’s value growth which attracted new investors. Put promotional boom of the industry within the financial markets and you have the recipe for in increased trader base.
Several popular exchanges closed new user registration processes due to the development. The main aim of the policy is a desire to provide time for companies to upgrade security. In this review, we shall go over the exchanges that accept new users and the reasons why some do not.
Why is Stopping the Registration Process a Good Thing?
With the huge interest, a number of new traders appeared in the cryptocurrency industry, Many of them decided to try their luck with cryptos in largest trade platforms, such as Coinbase, Bitfinex, Binance, and Bittrex. Thus, many of the companies were wondering what the next step should be.
Security, support tickets, and slow trading execution were the main concerns. New users would put the large pressure on customer support, meaning that customer teams are unable to perform basic verification checks. Additionally, the transaction systems had been developed with a limited number of transfers in mind. New users register an account not just to check out the platform but to buy and sell coins as well.
Additionally, the pump and dump groups and bots gained momentum, especially with the larger number of participants investing a few funds. These groups had a large sway on the cryptocurrency value, Bitcoin included.
Thus, it was important to handle these issues by blocking registration service. The decision was a sound one, as it gave time for exchanges to upgrade the equipment and software. The main aim was to accommodate a larger number of customers while expanding customer support team. In addition to the service and transfers, security needed upgrades as well. The pump and dup groups, alongside with cybercriminals had to be addressed accordingly.
How Big the Problem Really Was?
To grasp the scale of the issue, according to the numerous reports, there have been thousands of new users. The exchanges are now posting milestones of active traders measured by hundreds of thousands and, in some cases, even millions of new traders. The number spiked sharply in December 2017, meaning that increase of the customer base was not gradual.
The software and customer teams were simply not prepared for such large number of applications. Putting additional pressure was verification requirements which stated that scanned ID and proof of addresses were needed for trade to take place. Take the said number of freshly registered clients and multiply the number of needed documents. Now you might get the idea of how large the verification efforts were needed. Putting it bluntly – the companies involved in the crypto industry were simply not ready for the boom.
Exchanges that Are Still Closed for New Users
All four of the platforms provided similar reasons as to why the service was temporarily shut down. In the meanwhile, several did open its doors back, while only two now remaining closed of new traders: CEX.io and Bittrex.
CEX.io had serious support ticket and verification issues when the flood hit its perimeter. The company announced in December that registration shall be disabled for the time being until tickets and other support requests were solved. In addition to the support team expansion, the exchange now is in development of the new platform software as to accommodate a larger number of traders.
If you tried to register a new account at CEX.io, you would see the message below.
We do expect for the service to resume soon, so keep an eye on announcements in next few days on Facebook and Twitter.
The same issue can be seen in Bittrex exchange, one of the largest BTC trade platforms in the world. The company announced that intake of the new accounts greatly suffocates the verification and support teams. Thus, the company decided that expansions to the team and trade system were needed. The message below is still seen when you hit the button “Get Started Now”.
Exchanges that Have Stopped the Service and Opened Recently
The company has upgraded its system but is still at the test stage, thus the only limited number of users can now open an account at Binance. We cannot make any predictions as to when the Binance team will be able to accept any given number of new investors.
Bitfinex opened its business fully on 12th of January, slightly earlier than promised 15th of Jan. The exchange now offers full services for new users as it successfully upgraded its security and trading system. There are no limitations on the number of accounts that can register on daily basis.
Kraken did not only close the registration process but has shut down the entire platform. The management of the exchange deemed that several issues identified in December requested immediate attention from the development team. Thus, the website was unavailable for almost a week before limited trade functions were brought back. On 12th of January, the company announced a comeback, with all services upgraded according to the market needs.
Exchanges that have not Stopped New User Registrations
Apart from several platforms, many other exchanges dealt with issues while operating smoothly. Coinbase, LocalBitcoins, Paxful, Exmo and many others have not stopped their services at any point. The Coinbase, for example, is a registered business within the US and operates in only 32 countries. Thus, the management already planned for the potential intake of new trader prior to the wave.
In this article we discussed what exchanges are open for new customers in Jan 2018. Only two exchanges, Binance and Bittrex, locking new users, rest of the industry was open for business as usual. Bitfinex, Kraken, and Binance reopened the registration processes while all other exchanges have not limited the new users in any way. We expect that until the end of January, the situation will calm down, allowing for new investors to flood the market and push the industry forward.