BitMEX started the new year with an 100% KYC-verified active user base. After the company was sued by both the CFTC and the DOJ it has been making efforts to become compliant. After the CFTC and DOJ pressed charges against BitMEX, the exchange made an announcement saying that all users must go through a KYC procedure, otherwise, they will no longer be able to increase their positions or open new positions on BitMEX beginning on December 4, 2020. BitMEX originally set the deadline for KYC verification to February 12, 2021, but moved the deadline to November 5th, 2020 via an announcement made in mid-October.
“Since 4 December 2020, BitMEX users have been required to verify in order to deposit, trade, or withdraw funds. With remaining open positions from unverified accounts closed and the scheduled expiry of the December 2020 futures on 25 December complete, 100 percent of volume on the BitMEX platform is now fully verified,” said BitMEX in its announcement today.
100x Group Chief Compliance Officer Malcolm Wright went on to say,
We are now one of the few crypto derivatives exchanges outside the US to be implementing know-your-customer requirements before a user can complete their initial deposit and first trade. This significant achievement is the result of years of work to develop a robust compliance function to meet international standards. BitMEX has long been known for having world class security, technology, and product innovation. With all users on the BitMEX platform verified, we are demonstrating our commitment to being a compliance standout as well.
BitMEX vs. the SEC and DOJ
Regardless of their compliance efforts, BitMEX is still in hot water with the CFTC and DOJ. the CFTC and DOJ pressed charges against BitMEX and its founders for running an unregistered trading platform as well as violating anti-money laundering and know-your-customer regulations, and for violating the Bank Secrecy Act, respectively.
Since then, BitMEX has removed its former executives from their posts, however, we have yet to see how this battle between BitMEX, its founders, and the United States government agencies will play out in court.
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