Bitfinex is not planning to resolve the banking issues for retail customers
It's only the whales that are lucky.
Update Nov 23 2017:
Phill G. Potter of Bitfinex (PGP) did an interview on Whalepool’s teamspeak just now. PGP used to be a regular on there but over the past few weeks there was no sight of him - it is not so hard to imagine he’d be bombarded with questions for hours the minute he’d log in these days.
During the interview he spoke about the Bcash distribution, the new altcoins that are getting listed on Bitfinex and the ongoing fiat withdrawal issues - the banking issues being the only point where he actually said something surprising.
As you know, some months ago Bitfinex started having issues with their banking routes and had to stop fiat withdrawals. That also influenced people who weren’t using the fiat withdrawal and also those who didn’t even trade on Bitfinex because Bitfinex was removed from indexes for futures markets because an exchange without fiat withdrawals is bound to have bullish bias on cryptocurrencies that has nothing to do with the state of the market. Until now Bitfinex people kept making it clear that this fiat issue was being worked on and hopefully new routes would be set up. In the meantime, withdrawals were enabled for several bigger customers and for people with access to banking in Taiwan which is where Bitfinex banks. Traders took this for a good sign and were expecting the situation would be back in normal soon. Today though PGP explained that the banking issues won’t change from what is it now.
According to PGP, it wouldn’t pay off to Bitfinex to enable withdrawals for average the retail trader. He said the banks “don’t like to see many small transactions each day, it is harder to do AML/KYC for the USD routes and other fiat currencies, too”. Apparently enabling crypto-fiat routes for the retail would lead to more disruptions in the future anyway so it is not worth it for Bitfinex to do it. The way it works these days is if you are a big enough whale you already have fiat routes enabled, unless you’re new in which case you should talk to customer service. PGP explained the banking will probably stay available for the (few) regulars as they are KYC’d and known, while others will have to put up with crypto withdrawals and realize the profit via Kraken or Bitstamp if they want to. Effectively Bitfinex is trying to outsource this hassle to the exchanges that don’t have their fiat routes blocked.
Among the other things that PGP was talking about was the Bcash distribution the rules of which were changed after the distribution happened: ,,There is a lot of amateur laywers on Reddit but we have received no legal claims or complaints,” he explained and added a justification - the policy was changed so that people who hedged in such a way they didn’t have exposure to BTC would get no BCH, in other words in favor of people who had a position in BTC. Bitfinex always reserves the right to change their terms at any moment so there is not much you can do if you tried to game the system and were caught.
PGP’s explanation as to why Bitfinex suddenly lists tokens that are unheard of amounted to there’s money in it although it was said in better words.
This post will be updated with a link to the YouTube video of the teamspeak interview once it’s uploaded. To catch the next event connect to https://whalepool.io/connect/teamspeak - the rumor has it John Bollinger will be coming soon.
Update: Link to Youtube
Disclosure: This article is not sponsored by anyone in any form.
Liked the article?
Sign up to the mailing list and select "News analyses ONLY".
About the author
Written by KarlVonBahnhof
KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.
Opinions are author's own.
Comments are disabled for this article.
Author | Filed under Blog