Bitfinex Defends Crypto despite Industry’s ‘Multiple Crises’ in 2022

Bitfinex, a cryptocurrency exchange founded in December 2012, has said that “the future of our [cryptocurrency] industry is bright[er] now than ever,” despite the multiple crises that have rocked the industry this year, the latest being the collapse of once-beloved FTX.

The 10-year-old exchange in ‘An Open Letter from Bitfinex’ published on Tuesday noted that the crises will “mark an inflection point separating the strongest companies that bring real value to their customers and those that do not.”

Apart from the collapse and bankruptcy of FTX and the subsequent rub-off on the American lender, BlockFi, earlier this year, the industry was rocked by the sudden collapse of Terra-Luna. In addition, the crypto lenders Voyager Digital and Celsius Network, as well as the crypto hedge fund Three Arrows Capital, all went bankrupt this year.

However, the digital asset trading platform, which was established as a peer-to-peer Bitcoin exchange, believes that it would be wrong to “let the reckless acts of a few relative latecomers define the crypto industry and detract from the enormous, revolutionary benefits offered by blockchain technology, and specifically, Bitcoin.”

Bitfinex noted that Bitcoin “has remained beyond reproach,” adding that the digital assets’ “core value proposition as a tool of individual freedom and financial inclusion remains the same as it was when it was first unveiled almost 15 years ago.”

Bitfinex on Crypto Regulation

The crypto exchange noted that it is open to regulation “that supports a flexible, risk-based approach to customer protection.” However, the exchange pointed out that regulation, while protecting the interests of customers, must allow the industry to thrive.

Check out this recent Finance Magnates London Summit 2022 session on how and where fintech regulation is headed in 2023.

“Crucially, however, regulation should not stifle innovation and ingenuity. It is important that all parties take a measured and balanced approach to avoid excessive regulatory generalization,” Bitfinex added.

Bitfinex on ‘Why We’ve Survived this Long’

According to Bitfinex, the company has survived this long despite being one of the oldest firms in the industry because of its “relentless focus on winning the trust of our customers.” The digital asset firm added that it has stayed true to its values of “transparency, accountability, and honesty that embody Bitcoin.”

“In our industry, Bitfinex is one of the oldest companies and one of the largest by exchange-traded volume, but we are also one of the smallest by headcount, and we have a very strong culture underpinned by our values,” the company said.