The crypto markets are solidly red in the lead up to press time amid reports of a massive sell-off. BTC is selling below $6300 while ETH has tested below $200.
Sadly, new developments at Hong Kong operated crypto exchange BitFinex is only adding salt to injury. Block was the first to report that the crypto exchange has “temporarily stopped” fiat deposits in all major currencies such as EUR, USD, JPY, and GBP.
Social media reports suggest that the issue should be “normalized within a week” while Bitfinex has not issued an official response regarding the matter.
Market Implications
Halting fiat deposits mean that Bitfinex user base which is roughly 1.6 million people can no longer get their funds on the platform through wire transfer. In fact, only little is currently being injected into the crypto markets through its sixth-largest exchange by market volume.
Bitfinex’s Banking Woes Could Continue
After a sour relationship with Noble Bank in Puerto Rico, reports emerged last week that the Bitfinex has gained a new banking partner in the form of HSBC. The firm was shown to have a private account as Global Trading Solutions with the new bank.
However, the halt in fiat deposits on Bitfinex is evidence that the account which the exchange has with HSBC is either suspended or blocked. It could be that HSBC was not aware that it was holding Bitfinex assets and has called a halt in other to clarify the issue.
We cannot say for sure how long this will be, but it could culminate either at the beginning of a new banking partnership for Bitfinex or the close of another uninteresting chapter.
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