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Bitfinex Allegedly Moves Banking Business to Hong Kong-based Bank

The cryptocurrrency trading platform Bitfinex, has allegedly moved its banking business to Hong Kong-based Bank of Communication. This was according to a report from The Block published on October 16.
Founded in Hong Kong, Bitfinex is currently the 4th largest crypto exchange globally in terms of trade volume, with $321 million in trades over the past 24 hours. Bitfinex introduced fiat operations in 2015 to allow traders to “center the digital asset space.”
A reliable source had said that Bitfinex seems to be banking with the Bank of Communications through the private account “Prosperity Revenue Merchandising Limited.” According to The Block, Bank of Communications, which is partially owned by HSBC, has been utilizing US-based Citibank as the intermediary bank for US dollar wire transfers to Bitfinex.
The Block theorizes that HSBC (with whom Bitfinex previously conducted its banking business) was oblivious to the fact that it was rendering services for Bitfinex, and had afterwards closed the previous account.
A case similar to this took place last year when Wells Fargo purportedly refused to carry on operating as a correspondent bank for Bitfinex. In response to this, the exchange had filed a lawsuit against the bank which was eventually dropped.
According to reports from October 8, Bitfinex had been the center of attraction due to allegations that the exchange was bankrupt and/or battling with banking issues. These rumours were possibly triggered by the news last week of Puerto Rico’s Noble Bank, the exchange’s banking partner, seeking a buyer and had lost Bitfinex as a client. Bitfinex then responded to these rumours by denying them.
This report follows news that Bitfinex has temporarily put on hold all fiat wire deposits for the euro, US dollar, Japanese yen and UK pound sterling on Oct 11 without indicating reason for the suspension. Although they stated that the deposits are “expected to resume within a week.”
Bitfinex has also announced the introduction of a “new, improved and increasingly-resilient fiat deposit system.” According to reports, this new deposit process will enable know-your-customer (KYC)- compliant customers “from around the world” to conduct deposits in the four aforementioned suspended fiat currencies.
Deposit requests will be reviewed within 48 hours. Meanwhile, the deposit itself will be processed within 6-8 business days.
As of press time, Bitfinex had not yet released a statement or commented regarding the reported banking developments.
 
 
 

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