BitMEX’s KYC verification program has concluded, leaving all unverified accounts inaccessible and closing any associated open positions.
BitMEX announced the end of its accelerated user verification program on Dec. 4. The platform required users to update their KYC verification following regulatory issues that the exchange is facing.
Positions will automatically be closed for unverified accounts, and users will no longer be able to access them. The team stated that the number of unverified accounts is relatively small, as most users submitted the required KYC details.
BitMEX Forces KYC
Since Sept. 15, 2020, new accounts have had to register with complete ID verification.
The deadline to complete the verification process was initially set to Feb. 12, 2021, but BitMEX was forced to adjust the timeline. The decision was a result of the several compliance-related cases filed against the exchange.
BitMEX has been reminding users of the deadline, which generally drew flak from its customers.
BitMEX has also teamed up with Eventus Systems to boost its AML and KYC compliance. The partnership sees Eventus assisting the exchange in monitor transactions on the platform. However, the move appears to be too little, too late, as waves of users have already abandoned the exchange.
Despite these moves, BitMEX continues to face a great deal of scrutiny. The exchange is currently embroiled in multiple lawsuits, the most significant of which involve U.S. authorities.
Beleaguered BitMEX Still Under Fire
BitMEX’s woes began early in the year after the exchange suffered downtime during the March market crash. But its troubles really kicked off when the U.S. CFTC and Department of Justice filed charges in October.
This was followed by two more lawsuits from individuals represented by the same attorney, Pavel Pogodin of Consensus Law.
The charges against BitMEX include racketeering, money laundering, and market manipulation. Executive team members, including CEO Arthur Hayes, are also being charged.
Alexander Höptner, CEO of Börse Stuttgart and Euwax, has just been selected to become CEO after Hayes stepped down.
SEC Commissioner Hester Peirce has said that the actions against BitMEX are a sign from regulators. Indeed, the SEC has accelerated its examination of the crypto market in 2020. Both Telegram and KIK have already succumbed to pressure from authorities regarding their own cryptocurrency ventures.
The U.S. is currently grappling with ways to regulate cryptocurrencies, as China takes the lead with CBDC research.