Is Bitfinex Insolvent or Just Facing a Banking Issue?

October- 24, 2018 | AtoZMarkets

Cryptocurrency trading platform Bitfinex – the 4th largest crypto exchange globally in terms of trading volume – has shifted its banking business to the Hong Kong-based Bank of Communications.

Resources reported that Bitfinex might be dealing with the Bank of Communications, using the private account “Prosperity Revenue Merchandising Limited”.

Bitfinex informed that the Bank of Communications –in which HSBC is a shareholder of – uses the U.S Based Citibank as an intermediary for wiring U.S dollar to Bitfinex.

HSBC– which shut down the private account mentioned above- might have been unaware it was providing services to Bitfinex.

In a similar context, Wells Fargo was reported to have refused to continue operating as a correspondent bank for Bitfinex in 2017, which pushed the latter to file a lawsuit against the bank, for no avail eventually.

Their Partner Sought a Buyer After They Were No Longer Client

The last week, a report informed that Puerto Rico’s Nobel Bank International –which is Bitfinex banking partner- was seeking a buyer, and that it lost Bitfinex as a client, the thing that triggered rumors telling that Bitfinex was allegedly insolvent and/or facing banking issues, however the exchange denied the news.

In parallel, the media informed that Bitfinex temporarily suspended all fiat wire deposits for the EUR, USD, JPY, and GBP on Oct. 11, without determining the reason behind the step, noting that the deposits are expected to resume within a week.

On the other hand, the exchange announced earlier on the 17th of October the introduction of a “new, improved and increasingly resilient” fiat deposit system.

The new deposit process reportedly enables know-Your-Customer (KYC)-compliant customers to conduct deposits in the four fiat currencies previously suspended.

Banking Experts’ Opinion

AtoZ Markets spoke to three crypto-to-fiat-to-crypto exchanges on this matter. While the matter is kind of worrisome, it is also being welcomed. Many banks are trying to limit the crypto expansion, and even in some countries these banks will ban ordinary citizens’ bank accounts if they were to receive funds via cryptocurrencies.

Since some of these banks are being threatened -at least to their mind- it is normal that they would try to limit a large broker/exchange having fiat access. Meanwhile, within these notes, some banks are opening up to more crypto and blockchain innovation. While speaking to top 5 EU banks, one of them have confirmed that they are opening up for Cryptocurrency exchanges and would love to speak to top exchanges.

So, if your exchange is in need of banking solution, perhaps you might want to contact Atoz Markets, as we have a solution for you from one of the top 5 EU banks.

Bitfinex Deposit and Withdrawal Time

According to the reports, deposit requests will be reviewed within 48 hours, while the deposit itself takes “6-10 business days.” To be processed, according to Bitfinex.

It is worth mentioning that Bitfinex was founded in 2012 in Hong Kong, and is currently holding $321 million in trades over the last 24 hours at press time.

The exchange introduced fiat operations in 2015, to enable traders to “enter the digital asset space.”

Share Your Opinion, Write a Comment