BitMEX announces the decision to block users from Ontario

on Aug 24, 2020
  • Crypto derivatives exchange, BitMEX, recently announced that it will block users from Ontario.
  • The exchange did not reveal precise details, except that it was mandated by Ontario's securities regulator.
  • The new development comes despite BitMEX's attempts to become more regulatory-compliant.

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One of the oldest crypto derivatives exchanges on the market, BitMEX, recently announced the decision to block users from Ontario, Canada. The announcement was made in BitMEX’s recent blog post, which noted that users will not be able to open new positions after September 1st, 2020.

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Why is BitMEX blocking Canadians?

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According to BitMEX, traders from this region will not be able to open new derivatives positions after September 1st, as mentioned. However, those who already have open positions will be allowed to remain and let them run until January 4th, 2021.

After this date, however, BitMEX will start closing positions by force. The exchange noted that it would be best for traders to close positions on their own before this data comes, and not have their trades damaged through the exchange’s intervention.

The announcement has been a hot topic ever since it was made, especially since BitMEX did not reveal any real reason why it is doing this. It simply said that it was mandated by Ontario’s securities regulator.

This might mean that BitMEX is not in compliance with Ontario’s rules and regulations, and that it has chosen to leave this region of Canada.  While it will still be possible for Ontario users to register on the exchange by changing their location through anonymity technology, doing so would be a breach of BitMEX’s ToS.

BitMEX trying to comply with local regulations

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The move comes relatively soon after BitMEX has introduced KYC verification to its platform in an attempt to abandon its controversial past. The exchange’s goal is to become more regulatory-compliant. However, Ontario-based users are far from being the only ones who are blocked by the platform. US users have not been allowed to use it since 2015. On top of that, BitMEX recently blocked users from Bermuda, Seychelles, and Hong Kong.