One of the active crypto exchange and the Bitcoin futures trading platform, BitMEX is shutting client’s trading accounts in US and Quebec. Per SCMP, this move is a result of the Quebec regulator’s action on curbing unauthorized exchanges.
BitMEX Under Regulatory Pressure
Back in early 2018, Autorite des marches financiers (AMF), Quebec’s financial regulators urged to close all accounts linked with BitMEX exchange. This is because AMF identified that the exchange is not registered with AMF and thus not authorized to provide trading services. Nevertheless, an official announcement calls ‘the trading activities of BitMEX is illegal’ henceforth all linked accounts must be immediately closed.
tradi“BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec,”
According to the various sources, BitMEX’s major user base, specifically, a one-seventh portion comes from US-based traders. Nevertheless, the specific matter behind exchange’s US account closure is still out of sight and whether or not BitMEX is already registered with SEC is also not known. SEC (Securities and Exchange Commission) is continuously eyeing on unregulated and illicit crypto activities but it has declined to comment on BitMEX’s decision, IMF said. Nonetheless, the US-traders closure on BitMEX was also reported back in November 2018 by users on social media.
Just got my @BitMEXdotcom account terminated on suspicion of being a US Citizen. Anyone else find the timing of this odd?
The 900+ affiliates that accounted for half my income r gone going forward.
After #Unconfiscatable Conf expect prices on all services offered by me to rise. https://t.co/6bShmcdBEF
— Tone Vays [@Bitcoin] (@ToneVays) November 12, 2018
Beside SEC, Arthur Hayes who is the co-founder and chief executive at BitMEX also declined to respond to the decision. Moreover, the graph of BitMEX trading over the past year has also declined with the falling graph of Bitcoin.
Conclusively, the regulatory frameworks and market break down are typically the key reason behind BitMEX’s closure. At press time, BitMEX counts the trading volume $928,723,978 where the leading cryptocurrency, Bitcoin is trading at $3662.50. Additionally, it is noted that few BitMEX users switched to trade Bitcoin futures when Bitcoin suddenly dumped in 2017 from its peak of almost $20000. According to the data from coinmarketcap, Bitcoin is valuing $3679.79 with positive growth of 2.99 percent during 24hrs.
image source – https://coinmarketcap.com/currencies/bitcoin/
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com