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BitMEX Says Traders Now Have Until Nov. 5 To Verify Their Accounts
With the ongoing legal battle against the US authorities, cryptocurrency derivatives giant BitMEX announced today that traders using the platform have just two weeks to verify their accounts.
Since its launch in 2014, the Seychelles-incorporated exchange allowed customers to trade even without verification. But in August, BitMEX revealed that it would implement a mandatory Know-Your-Customer (KYC). This requires both new and existing users to submit their personal information for checks.
No Verification, No Withdrawal
When BitMEX initially announced its User Verification Programme, the company said traders had until the next six months to comply with the new policy. However, that has changed. Users now have until November 5 to verify their accounts to continue using the platform.
Traders who do not verify their BitMEX accounts before the new deadline will not be allowed to open new positions or increase existing positions. Unverified customers can maintain or reduced their current open positions, the exchange said.
Those who do not wish to comply with the mandatory KYC have until December 4, 2020, to withdraw their funds. After the deadline, all withdrawal requests would require verification.
Why The Rush?
BitMEX’s move to accelerate its mandatory KYC requirements stems from the US lawsuits against the exchange and its founders.
Earlier this month, the United States Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ) accused BitMEX of running an unregulated exchange while violating the mandatory KYC regulation for US customers.
Following the charges, the DOJ arrested the company’s co-founder and CTO Samuel Reed. He was later released on a $5 million appearance bond.
As part of its effort to ensure that the company is fully compliant, BitMEX’s parent company 100x reshuffled its management team. The company appointed Vivien Khoo as Interim CEO while the three founders stepped down from their executive positions.
Last week, the company announced it had onboarded AML expert Malcolm Wright as its new Chief Compliance Officer (COO).