The rising interest in and demand for cryptocurrencies have made it a hot property and everyone wants to have a share of it. The shine of cryptos is so bright that traditional financial institutions and banks too are partnering with crypto businesses and exchanges. According to a recent twitter post of Larry, Cermark Bitfinex is now banking with HSBC through a private account of Global Trading Solutions.
Banks reading up to partner crypto exchanges
Larry Cermak, the head analyst at The Block, recently took on to twitter saying that Bitfinex now banking with HSBC through a private account. He also posts that all EUR, JPY, and GBP deposits are currently paused but Bitfinex “expects the situation to normalize within a week”.
Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It’s also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex “expects the situation to normalize within a week”. Banking issues? pic.twitter.com/1pxQ13NO0m
— Larry Cermak (@lawmaster) October 6, 2018
Sharing Cermak post, Joseph Young also put forward that nearly all major banks South Korea, Japan and even in the US are supporting crypto exchanges.
Bitfinex, still one of the largest crypto exchanges in the global market, has HSBC as its banking partner.
Most of South Korea’s exchanges rely on the country’s largest commercial banks and Japan and US-based banks are also supporting crypto exchanges. https://t.co/T6CRksEnA1
— Joseph Young (@iamjosephyoung) October 6, 2018
It seems like the tussle between traditional banks and financial institutions and cryptocurrency exchanges is finally coming to an end. As crypto exchanges are growing and improving transparency of operations, it is giving some sought of comfort to the banks that these new age businesses are here to stay. Till recently, what critics say hampers innovation, most banks have been reluctant to open accounts for cryptocurrency-linked companies over fears that the anonymity afforded to digital currencies could expose them to breaches of anti-money laundering regulations.
Also as these exchanges are maturing, many larger exchanges are pushing to legitimize a sector where traders have been vulnerable to extreme price volatility and hacking If this legitimization happens, the relationship between banks and exchanges will go further strong.
HSBC ready for cryptocurrency but with a cautious approach
HSBC is one of the banks that had, till very recently, policies which were nonsupportive to crypto exchanges and businesses. But in July Josh Bottomley the Global Head of Digital at HSBC did an interview with Forbes, where he said We are cautious looking into this area” when he was asked about the bank’s approach towards cryptocurrencies.
Josh told Forbes:
“There’s a use case when you have a token or currency that’s actually useful for a particular purpose, and it serves that need.” “But that is very different to if it’s pure speculation…Right now we’re not interested in that at all…but it might change.”
With Barclay’s joining hands with Coinbase and now HSBC working with Bitfinex clearly shows that the tide is changing as banks are slowly opening doors to crypto exchanges.
Will the relationship between banks and crypto exchange improve further? Do let us know your views on the same.