November 25, 2020

Cryptheory

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BitMex issues 2 weeks KYC ultimatum

2 min read

  • BitMex mandates users to update their information on the exchange before December 4
  • The exchange has faced different lawsuits initiated by the US authorities 

BitMex, a popular cryptocurrency derivatives platform, has told their users that they have less than two weeks more to update their data on their exchange to meet the KYC standard.

The crypto firm made it known that users who are unable to fulfill this criteria on or before the 4th of December will be unable to continue transactions on their platform. This means that users of the platform that want to continue trading, withdrawing funds and performing other activities have to update their details.

BitMex was forced to reduce its deadline by two months after it faced legal actions from the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ). 

The exchange is also striving to meet this new compliance regulation by entering into a partnership with Eventus Systems. Eventus is an AML platform that will look to help BitMex carry out surveillance duties.

Not only that, the platform has added the Refinitiv Toolset that would help them monitor how their services are being used. 

The United States through its agencies have filed different lawsuits against firms operating in the crypto space. This has resulted in some firms having to either settle or close their crypto ventures. Telegram, for instance, had to stop its blockchain project. Kik, on the other hand, had to pay a $5 million dollar fine to the authorities.

BitMex announcement causes outrage

BitMex’s announcement that its KYC deadline is now December 4 has caused loads of reaction among users of the exchange on Twitter and other media forums.

Many of them had reacted harshly to this new information and asking why the exchange wanted to know more about their users.

The exchange has however tried to downplay the many legal actions it has faced due to its failure to implement the KYC rules. The fun has said that it would try as much as possible to continue to operate in its usual normal way.

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