BitMEX speeds up the mandatory verification of its users’ identities
- Per BitMEX, this haste is a result of stronger identification requirements from authorities.
- The exchange asserts that all its traders and affiliates must verify their IDs before November 5.
- According to BitMEX, unverified users will not be able to withdraw funds after December 4.
BitMEX, a renowned crypto exchange and derivative trading platform has expedited the mandatory verification of all user identities. A report unveiled this news on October 21, noting that the exchange made this decision as global governments continue coming up with stronger identity verification requirements. Reportedly, BitMEX has decided that all its users must verify their identities before November 5. Before this adjustment, the exchange had initially set the deadline for ID verification in early-February next year.
According to the report, this hastened timeline mandates that all BitMEX traders and affiliates verify their identities by 0:00 UTC, November 5, before increasing or opening new positions. The exchange asserted that all users must verify their accounts by December 4 in order to process withdrawals.
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Per Ben Radclyffe, the commercial director of 100x Group, BitMEX’s parent company, the exchange will start reviewing the open positions on unverified accounts after December 4. After December 4, all unverified accounts will not be able to process withdrawals. However, Radclyffe noted that BitMEX will communicate to the account holders, granting them an opportunity to recover and withdraw their funds once they verify their accounts.
50% of BitMEX’s trading volume comes from verified accounts
According to Radclyffe, more than 50% of BitMEX’s trading volume at the moment comes from verified accounts. Allegedly, this percentage represents the trading activity of tens of thousands of accounts. 100x Group’s chief compliance officer, Malcolm Wright, added that this push for identity verification comes as the crypto industry’s KYC-free days continue inching towards an end.
Allegedly, BitMEX intends to use its accelerated identity initiative alongside other corporate programs and Wright’s experience as the chairman of an anti-money laundering working group at Global Digital Finance to become an industry leader regarding identity verification initiatives.
BitMEX’s collision with US authorities
This news comes after BitMEX first announced that its users must verify their identities in August this year. Two months later, the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) filed charges against the exchange. The regulators claimed that BitMEX had attempted to evade US regulations by offering US citizens illicit crypt derivative trading services.
On top of this, the agencies charged Arthur Hayes, the exchange’s CEO, with violating the Bank Secrecy Act and conspiracy to go against the act. The authorities also charged company owners Ben Delo and Samuel Reed, and the exchange’s first employee, Gregory Dwyer with the same infractions as Hayes.