Bitcoin

The Crypto Exchange Bitfinex Suspends All Fiat Deposits

The Crypto Exchange Bitfinex Suspends All Fiat Deposits

The well known Cryptocurrency exchange Bitfinex has paused all Fiat deposits and expect the situation to normalise within a week, according to recent news.

Bitfinex, one of the biggest cryptocurrency exchanges, has temporarily suspended all deposits for Euro, U.S. Dollar, Japanese Yen and Pound Sterling. So far, no reason has been given for the suspension, but the situation is supposed to return to normal within a week.

Bitfinex, which is headquartered in Hong Kong and registered in the British Virgin Islands, has had a long and winding banking history. In April 2017, a banking relationship between Wells Fargo and Bitfinex ended. Bitfinex and Tether then moved their banking business to Noble International later in the year before beginning to move their balances late this past summer.

When news about how Puerto Rico’s Noble Bank lost Bitfinex as its customer, rumours made its way across the internet that claimed the exchange was insolvent and faced banking issues. Bitfinex answered a few days ago, through a blog post, that this was not the case.

“Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this. As one of only a very few exchanges operating since 2013, with a small team and low operating costs, we do not entirely understand the arguments that purport to show us to be insolvent without providing any explanation about why. The wallets below represent a small fraction of Bitfinex cryptocurrency holdings and do not take into account fiat holdings of any kind”.

Even though the Noble Bank lost Bitfinex as its customer, Bitfinex is working on other partnerships. The exchange seems to be banking with HSBC via a private account registered under the name “Global Trading Solutions.”. The cryptocurrency exchange has not responded to this news yet.

“Bitfinex does not, and has never, commented on actual or potential business relationships, and this is not subject to change now,” Kasper Rasmussen, director of communications at Bitfinex, said in an emailed statement. 

However, the news that certain currency deposit restrictions are in place will raise some concern. And it will raise new questions about what information HSBC been provided, that gave them confidence in allowing Bitfinex to the bank with them when other large banks like Wells Fargo have failed to maintain relations. 

Bitfinex is the fourth biggest cryptocurrency exchange by market capitalisation and has a daily volume of $720 billion, according to Coinmarketcap.com.

Image Source: “Pexels”

Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.


Use Coupon Code: "News" and Get 20% OFF on Your Order!

Let's discuss!