BitMEX Takes a Giant Leap
In a major turn of events, BitMEX has finished its user verification program, emerging as a fully certified crypto trading platform. This marks a milestone in the crypto industry as compliance becomes the name of the game.
The Verification Process and Unresolved Accounts
As part of the massive overhaul, the platform took the drastic step of closing open positions associated with unverified accounts. Talk about keeping your house in order! This move aligns with the company’s earlier announcements made in August 2020, where they revealed plans for tightening their Know Your Customer (KYC) policies amidst mounting regulatory pressures.
Responding to Regulatory Pressures
BitMEX’s journey hasn’t been a walk in the park. The exchange was hit with charges from the U.S. Commodity Futures Trading Commission (CFTC) for allegedly operating a derivatives trading desk without the proper licenses. To add salt to the wounds, the New York District Attorney stepped in with criminal charges against the company’s high-profile figures, including its former CEO, Arthur Hayes. Seems like compliance was long overdue!
Moving Toward Security and Compliance
In light of these regulatory challenges, BitMEX announced a revision of its Anti-Money Laundering (AML) and trade surveillance policies in late 2020. Since early December 2020, completing user verification has been mandatory for anyone wanting to deposit or trade. Spoiler alert: You can’t just stroll in and start trading anymore!
A Look at Trading Volume and Future Insights
The overhaul has not gone unnoticed, with BitMEX reporting an impressive $100 billion traded on the platform since achieving full verification. CEO Alexander Höptner expressed his enthusiasm, stating that this step positions BitMEX favorably for capturing the growing user base looking for reliable, secure crypto trading options. “It marks a bright start for BitMEX in 2021,” he confidently claimed.
The Shift to Decentralized Exchanges
Interestingly, as BitMEX embraces compliance, the crypto landscape is shifting. The rise of decentralized exchanges (DEXs) continues to draw attention, especially given their 1,000% spike in trading volume during Q3 2020. These platforms promise anonymity with no KYC shackles while offering margin trading. Some, like ShapeShift, have even ditched KYC processes entirely, catering to users eager to remain in the shadows. A wild west of a different sort, perhaps?
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