Bitfinex rolls out new fiat deposit system amid Tether debacle

Bitfinex, the second largest crypto exchange by market cap has rolled out its new fiat deposit system, revealed the company's official blog. The exchange had yesterday announced that they had paused all fiat deposits for certain users. They had also mentioned that the company was planning to create a new and robust fiat deposit system to improve the efficiency of fiat deposits on their exchange platform. The company has introduced a more 'resilient' fiat deposit system for sending fiat currencies to Bitfinex. The new fiat deposit system is termed as a distributed banking solution by the exchange. The new system will require more KYC documents and will also be succumbed to a meticulous review process which can take up to 48 hours. "A user wishing to initiate a fiat deposit on Bitfinex will create a deposit request to signal interest in completing a deposit. Through this deposit request, a user will be able to specify the exact amount and currency which they wish to deposit," according to the blog. The system will then review the account for approval. The approved accounts will get a deposit notification which includes bank details of the individual transactions. After the information is received, the user can start the deposit. The company has indicated that it will take up to six to ten business days to process a transaction. "We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters. Ongoing campaigns against us will only result in our company becoming stronger and better," read the blog. Bitfinex has rolled out this new fiat deposit system amid Tether, world's leading stablecoin losing its peg. Tether Limited, the company behind Tether and Bitfinex share the same management.  The exchange has failed to furnish audit to back its claims of each Tether token being backed $1 dollar cash reserve which has led to doubts relating to the actual stability of the coin. Bitfinex is now the second largest holder USDT after Binance, the largest crypto exchange in the world. While Bitfinex amasses USDT in its hot wallet, there has been significant outflows of Bitcoin from the exchange's cold wallet in the past few days. This has brought about rumors among the community that Bitfinex is also involved in Bitcoin price manipulation.

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