The former editor at Diar and head analyst at The Block, Larry Cermak, is in the crypto news lately after reporting that one of the leading crypto exchanges Bitfinex obtained a banking partner in the $133 billion banking giant from London, HSBC.
As Cermak said:
“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.’”
Meanwhile, Bitfinex has experienced some of the most difficult challenges an exchange could face in wake of the clarity on cryptocurrency regulation as well as the challenging situation in Japan and South Korea. The exchange also has conflicts with Taiwanese banks, since when it moved out of the country and relocated to the Caribbean.
As Bloomberg then reported, the partnership with Noble Bank that followed for HSBC did not go well, as the bank filed for bankruptcy and quickly vanished. However, HSBC is a well-known company and finally the banking partner that Bitfinex deserves, according to many.
In the wake of the new partnership, the director of communications at Bitfinex stated:
“Bitfinex does not, and has never, commented on actual or potential business relationships and this is not subject to change now,”
However, what many speculate is the exchange obtaining the official banking services of HSBC through a strictly regulated channel.
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Accounts Of The First Digital Bank In India Closed After Involving In Crypto-Related Activity
“I've been a user of DBS' Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank. I checked my mailbox and found the mail myself.”However, Digibank stated:
“Reserve Bank of India through their public notices have warned/advised the public regarding risks associated with virtual currencies. We reiterated the same vide our emails dated 4th May 2018 and 2nd Aug 2019, cautioning our account holders [against] the risks associated [...] and that DBS accounts and debit cards should not be used for their purchase or any kind of dealings.”Many other users responded to the allegations that not only Digibank but many other banks are doing the same as well.
BitMex Pulls The Plug On Trading Accounts In Quebec And The US
‘’The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.’’It seems like BitMex only wants to cover its back and provide protection for their users against regulatory crackdowns. However, the exchange decided to pull the plug on the trading accounts after the Canadian regulatory body has announced the BitMex is operating illegally in Canada:
‘’BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.’’There is still no explanation why the exchange decided to shut down the trading accounts in the US. Many believe that the exchange does so because of the same strict crypto regulations. We are still expecting a comment from BitMex since it seems like there is almost a billion dollars worth of crypto still on the platform.
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