SwanBitcoin445X250

Bitfinex Introduces Top Secret Banking System

Bitfinex has restored the ability of customers to make fiat currency deposits. Details of its new deposit system remain shrouded in secrecy, however, with the exchange going to extraordinary lengths to conceal the identity of the bank(s) in question. Its “distributed” system, designed to circumvent censorship, has brought the critics out in full force.

Also read: The Daily: Tether Regains Ground, Coinbase Does Dublin

Convoluted Fiat Deposit Process

The Daily: Bitfinex Building Decentralized Exchange, Bitpanda Adding ZcashAfter being forced to suspend fiat currency deposits last week, when HSBC terminated its proxy banking relationship, Bitfinex assured customers that an alternative would soon be in place. And the exchange, the world’s second largest by trading volume, has been as good as its word, confirming its new banking relationship earlier today (Oct. 16). However, the opaque nature of the statement, and the odd language it was couched in, have raised more questions than they have answered.

“Today we are introducing a new, improved and increasingly resilient fiat depositing system for sending fiat currencies to Bitfinex,” began the blog post. “This new process will once again allow KYC-verified users from around the world to initiate deposits across USD, GBP, JPY and EUR.”

The exchange then proceeded to describe a complex process by which customers must deposit a minimum of $10,000 of fiat currency from now on. This involves creating a deposit request to signal interest, waiting up to 48 hours for Bitfinex to approve it, sending money to the bank account, and then waiting six to 10 days for the funds to clear. Coinbase, by way of comparison, takes an average of three to five days to clear bank transfers.

Customers Sworn to Secrecy

Bitfinex Introduces Top Secret Banking SystemBitfinex’s statement ends on a defiant note, with the exchange asserting: “We believe this system

Read more from our friends at Bitcoin.com: