Report Finds Which Banks House The World’s Largest Cryptocurrency Exchanges

  • The Block has found which banks are used by popular cryptocurrency exchanges.
  • This provides clarity after a week of rumors that Bitfinex was having trouble finding banking relationships.

Over the past month, the cryptocurrency space has been ripe with drama regarding banking. First, Bitfinex had troubles with deposits and withdrawals, causing allegations of insolvency. Then Noble Bank, the bank that previously hosted Tether, was put up for sale. After all this bad news, Bitcoin skyrocketed up 10% when Binance and Kucoin paused Tether trading. Lastly, Tether moved their funds to Deltec Bank, calming the banking despair for Bitfinex and Tether.

With all of this controversy, readers might be wondering where the other cryptocurrency exchanges are banking with. Thankfully, The Block has compiled a report of where they believe each cryptocurrency exchange is banking:

exchanges banking relationshipsFrom: The Block

Despite the ease of finding these data, The Block hints that Bitfinex tries to hide their identity: “Our findings suggest that Bitfinex is the only significant firm that opens accounts using alternatives names.” This layer of privacy could be what’s causing Bitfinex’s name to be dragged through the mud as of late.

Missing from this list is BitMEX, who does not trade USD on their platform and has their corporation organized in the Seychelles. Considering that BitMEX does not allow any deposits or withdrawals in USD, and only deals in BTC, it seems BitMEX is able to avoid the banking headache experienced by many exchanges.

Crypto Banking Troubles

Banking issues have plagued the cryptocurrency space since its inception. Last year, even the extremely popular exchange Coinbase had trouble with its banking process, according to Business Insider.

Banking issues are not exclusive to the United States, as this trend has been seen all over the world.

Last week, the Canadian Imperial Bank of Commerce froze bank accounts totalling $28M owned by cryptocurrency exchange QuadrigaCX.

Across the Pacific, banking isn’t easier either. The Reserve Bank of India has recently banned any bank accounts seen transacting with cryptocurrency exchanges. Despite these headaches however, Indian exchange Unocoin seems to be finding a way around the legislation.

UK Opens $130,000 Contract to Catch Crypto Tax Evaders

  • The HMRC has opened a contract worth £100,000 for the creation of software that can detect crypto tax evaders.
  • Special preference is being given for tools targeting privacy coins such as Monero.

The United Kingdom has offered a contract worth £100,000 ($130,000) for software that can identify when cryptocurrency is used to avoid paying taxes. 

According to the contract posted by HM Revenue & Customs (HMRC), the organization is seeking a tool that will “support intelligence gathering methods” for identifying and clustering cryptoasset transactions and linking to their service providers.

The contract claims the tool must be capable of tracking bitcoin, bitcoin cash, XRP, USDT, ethereum and ethereum classic. Preferential treatment will be given to developers capable of creating a tool that can analyze private cryptocurrencies, such Monero. 

The contract reads, 

Crypto assets, such as Bitcoin and Ethereum, provide a means to transfer value between interacting parties.  Also known as virtual and crypto currencies, these services are increasingly used for a range of purposes, from international money transfers, sales of digital services, paying staff and tax evasion and money laundering.

HMRC is one of the UK’s largest organizations, with 60,000 full-time equivalent staff working to collect taxes.

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