Crypto derivatives platform BitMEX informs know-your-customer program has been completed successfully. Now, all of BitMEX’s users are verified customers of the company.
The giant derivatives platform unveiled its user verification plan in August 2020. It was decided after the regulators made it mandatory for the cryptocurrency exchanges to comply with KYC policy. In over four months, it has finally announced the completion of the comprehensive KYC program.
No Place for Unverified Accounts
In the official announcement, BitMEX has also informed the community that unverified users can no longer hold open positions. It is now necessary for people who want to join the exchange to give the detail required for KYC verification.
According to Alexander Höptner, CEO of BitMEX:
“It places us in an advantageous position to capitalise on the surge of users – both retail and institutional – who are seeking a platform on which to trade crypto derivatives confidently without sacrificing security, liquidity, or performance. It marks a bright start for BitMEX in 2021.”
The regulatory authorities have made rules and regulations strict regarding KYC and anti-money laundering (AML) policies. The companies dealing with cryptocurrencies will no longer find an escape from regulators’ rules. In the early days, the majority of the crypto companies operated without setting any conditions.
However, decentralized exchanges are not asking for comprehensive user detail, which is why these platforms have attracted millions of traders over recent months. As per the on-chain data, the decentralized exchange volumes have increased more than 1000% in Q3 2020.
Even some decentralized platforms are offering margin trading with a requirement of zero KYC. It is supposed to hide the identity of a trader, thus maintaining anonymity.
Lately, the Securities and Exchange Commission filed a lawsuit against BitMEX and its top leadership. The SEC accused the exchange of offering unregistered derivative products. The company rejected allegations of the US regulator, but it impacted the growth of the company a lot. Soon after the SEC’s legal attack, the trading volume of BitMEX declined to a great extent.
The largest Bitcoin derivatives platform has defended its case and has also made several changes in the leadership. Arthur Hayes was removed from the seat of CEO. Borse Stuttgart took the chief executive responsibilities of the company.
Furthermore, BitMEX has also revealed that a total of $100 billion in volume has been traded since the completion of user verification.