Bitfinex reveals the launch of new fiat currency processing system; news comes after Bitcoin [BTC] breaks $7000

On 15th October, Bitfinex, a prominent cryptocurrency exchange, clarified the recent pause of fiat currency transactions on the platform. The main point of discussion occurred when the company revealed that a new and improved fiat deposit system will be available by 16th October. They have explicitly stated that the pause may have caused harm to users but it was done in the light of a few reasons.

Bitfinex said that all cryptocurrency and fiat withdrawals are being processed as usual without the slightest interference. They have also confirmed that the fiat transactions pegged to USD, GBP, JPY, and EUR are being processed as usual. Bitfinex has stated that the main goal of the recent news was to update users that the pause is only ‘temporary’ and only for certain user groups.

Cryptocurrency holders and enthusiasts have jumped on the news with various comments on Bitfinex’s social media posts.

CryptoHamster, a Twitter user commented:

“Now it would be even more funny if #Bitmex will go to maintenance…”

Weepingguitars, another user stated:

“I knew this is all just FUD, crypto cattle being driven by the shepherds in a desired direction.”

Bitfinex had earlier paused USD deposits on 11th October much to the chagrin of users. The exchange had come under scrutiny for the wide use of USD Tether stablecoin. There have not been any transparent audits that prove that the coin is actually backed by USD. This also presents a grave situation for the market, as over $2.6 billion is in USDT.

The Block, a cryptocurrency news reporting portal, revealed that the exchange had paused all of their deposits for USD. They also stated that they “expect the situation to normalize within a week”. The same portal also reported on their new partnership with HSBC Bank, after reports emerged of their previous banking partner finding difficulties to run.

Bitfinex mentioned in their blog post:

“Complications continue to exist for us in the domain of fiat transactions, as they do for most cryptocurrency-related organizations. However, we continue to do our utmost to minimize any waiting times associated with fiat deposits and withdrawals.”

Recent news has also shown that Kucoin, another cryptocurrency exchange, had suspended all Tether [USDT] transactions. Kucoin said in a blog post:

“Due to USDT wallet system maintenance, we have decided to temporarily close deposits and withdrawals for USDT. We apologize for any inconvenience caused during the upgrade.When everything has been resolved we will re-open deposits and withdrawals for USDT, please wait for our further updates.”

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