On the 6th day of October, Larry Cermak, Former Diar editor and head analyst posted on his Twitters wall, Bitfinex’s intention to partner with the $133 billion banking giant, HSBC.
Larry Cermak mentioned in his tweet that the exchange is banking with HSBC through a private account of Global Trading Solutions. Owing to the nature of the private account, Larry stated that it is not very clear if the banking giant is aware that Bitfinex is banking with the firm. He also added that the extent of the relationship between the two firms is also not clear.
The Bitfinex crypto exchange’s banking relations are closely scrutinized owing to its close relation with stablecoin, Tether. Much of Tether’s volume is transacted with Bitfinex and the two entities share common investors and management.
Bitfinex is just one among the oldest cryptocurrency exchange to have ever been in existence. This particular exchange has faced a lot of difficulties during all these period it has been in existence.
This is mainly before major crypto markets such as South Korea, the U.S. and Japan offered clarity on cryptocurrency regulation. In April 2017, Bitfinex initiated a lawsuit against a U.S.-based banking giant, Wells Fargo, for blocking deposits to Bitfinex’s banking account and disrupting its business operations.
After that incident, the Bitfinex crypto exchange moved out of Taiwan and relocated to the Caribbean. The exchange partnered with Noble Bank in May to process transactions sent by its clients. However, Noble Bank announced to file for bankruptcy following an in-principle deal to restructure debt in January. With that, Bitfinex’s only banking partner, Noble Bank vanished, as reported on CCN.