As of December 4, the BitMEX cryptocurrency derivatives exchange announced the completion of its user verification program.
Our User Verification Programme deadline has now passed. All BitMEX users now need to have verified in order to deposit, trade, modify open positions, or withdraw funds. We thank all our users for their support on this important programme. Read more: https://t.co/p7MjIummP6
— BitMEX (@BitMEX) December 4, 2020
Verification is required for deposits and withdrawals, as well as for opening and modifying positions.
“We will review active positions of unverified users and close them in the manner established. This applies to a small portion of open positions, as most users have already completed verification,” exchange representatives said.
Clients who have not yet verified their accounts can still do so, after which the restrictions will be lifted.
For verification, BitMEX requires a government-issued ID, a selfie, proof of location, and disclosure of the source of funds.
Earlier, BitMEX told users in August about the tightening of verification. It was then expected that six months would be given to provide the required information.
In early October, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against BitMEX and its owners, including co-founder and CEO Arthur Hayes. They were accused of operating an unregistered trading platform and violating CFTC rules regarding KYC/AML procedures.
In the same month, Hayes left his post. From January 1, 2021, the exchange will be led by the former head of the Stuttgart Stock Exchange, Alexander Heptner.
In November, the platform announced a collaboration with Eventus Systems, which develops solutions to prevent market manipulation and to ensure compliance with anti-money-laundering (AML) rules.
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