Bitfinex Announces the Resumption of Fiat Deposits

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After discontinuing its fiat deposits for nearly a week, owing to its troubles with finding a reliable banking partner, Bitfinex finally has stuck to its words and has announced the resumption of fiat deposit through its new fiat deposit system.

Bitfinex still hunts for a reliable banking partner

Bitfinex announced the resumption of Fiat deposits using its twitter hand where it said that the exchange expected its new fiat deposit system in place with the next few hours.

Bitcoin’s biggest exchange, Bitfinex, had suspended all fiat deposits and stopped accepting bank transfers, just days after the exchange had denied rumors that its operations were on the brink of insolvency. The latest suspension was linked to recent reports which had held that the exchange’s Puerto Rico-based bank, Noble Bank International, was facing insolvency.

The crypto industry outlet The Block, which first broke the news, said Bitfinex was banking with HSBC through a private account of Global Trading Solutions. However, it’s not clear if the lender has blocked the crypto venue or what alternative channels will be considered to solve these transmission delays. In all cases, the complexity and scale involved mean that it is taking some time to return to normal payment cycles, though Bitfinex “expects the situation to normalize within a week.”

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Bitfinex’s banking arrangements have been unclear since it lost access to Wells Fargo as its correspondent bank in April 2017. The British Virgin Islands-based company, which currently handles around half a billion in bitcoin trading volumes, opened a Polish bank account in November 2017 to begin trading euro pairs.

Bitfinex is currently the 4th largest exchange globally by daily traded volume, seeing a 154 percent increase over the 24-hour period to see almost $633.4 million in trades on the day.

While clearing rumors of, late last week, on October 7th, Bitfinex published a blog post entitled “A Response To Recent Online Rumours”, in which the company denied it was having problems processing fiat:

“Both fiat and cryptocurrency withdrawals are functioning as normal. Verified Bitfinex users can freely withdraw Euros, Japanese Yen, Pounds Sterling, and U.S. Dollars. Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations.”

The blog post also said that any news about “an entity called Noble Bank,” had no impact on the exchange’s operations.

With Bitfinex resuming its fiat deposits does come as a relief to a lot of users. Does bring in some credibility to Bitfinex statements. Hopefully, the exchange would resolve other matters soon as well.

Will Bitfinex be able to establish the credibility and become a prominent global exchange? Do let us know your views on the same.   

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Nilesh Maurya

Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.

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