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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