The Bitfinex crypto exchange announced on October 11 that it has temporarily decided to suspend all fiat deposits. The exchange stated that fiat deposits involving the Japanese Yen, Euro, U.S. Dollar and Pound Sterling will all be suspended temporarily. Bitfinex offered no explanation as to why it took this sudden decision to suspend fiat deposits. The exchange, however, stated that the fiat deposits are expected to resume within a week.
With regards to the rumors doing the rounds that suggest that Bitfinex is dealing with banking issues, the exchange was forced to respond on October 8. In its response, the exchange acknowledged the continued complications pertaining to fiat transactions. However, it also commented that other crypto exchanges too face similar issues. The rumors surfaced when the exchange’s banking partner Noble Bank International announced to file for bankruptcy after which it lost Bitfinex as a client.
Ever since the reports of Bitfinex crypto exchange ending its ties with Noble emerged, the industry received the news that HSBC is the new banking preference for the exchange. However, Bitfinex has not yet commented on their new banking preference. Despite Noble-related allegations, there seems to be no impact on the operations, profits or survivability of Bitfinex, as stated in the Bitcoin Exchange Guide report.
On October 11, BTC was trading at a premium on the Bitfinex exchange over other exchanges. Some people have attributed this factor to the ongoing uncertainty swirling around the exchange. The latest development of Bitfinex temporarily suspending fiat deposits came after weeks of rumors around its financial health, with critics pointing to the exchange’s ties with Tether (USDT), the struggling stablecoin.
The Bitfinex crypto exchange rubbished the claims pertaining to its financial health in a blog post stating that how can any rational party claim insolvency when the exact opposite is there for all to see. The exchange further added that these rumors are perhaps indicative of a targeted campaign against it that is based on mere fiction, as reported on CoinGeek.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]