Popular derivative exchange, BitMEX has, since the beginning of this year, seen an increase up to 50% in its insurance funds. Currently, the exchange holds an approximate value of $314 million, or an equivalent of 31,300 bitcoins which represent 0.15% of the cryptocurrency’s total supply.
These figures represent more than 50% increase in the exchange’s insurance funds since the beginning of the year. The BitMEX Insurance Fund is used for controlling unfilled liquidation orders on the platform.
BitMEX’s Insurance Funds Settles Leverage Trade Differences
BitMEX does not require any fees on negative account balances since the trades are structured in such a way that ensures that the winning party of a trade is always paid off. In the event that the losses recorded on a leveraged trade do not cover the winner’s gains, the exchange makes the settlements directly from their insurance funds. These insurance funds have now soared by more than 50% since the beginning of the year and this may mean that the derivatives exchange is still fully functional with lines falling in pleasant places.
BitMEX undergoing CFTC Probe
The Seychelles-based crypto derivatives exchange is still under the watchful eyes of the U.S. Commodity Futures Trading Commission (CFTC) which is probing the firm to determine whether it went against regulations in the form of servicing US traders. The derivatives exchange is not registered with the U.S Commodity Futures Trading Commission CFTC, the reason behind why the U.S. is in its restricted regions list. BitMEX has also restricted access to customers across three different countries including its base country, Seychelles. The news of geofencing its customers across the aforementioned regions is not yet clear.
BitMEX also experienced a huge outward flow of funds following its tangle with Nouriel Roubini who single-handedly ramped up a campaign against the exchange with allegations of loose KYC/AML policies.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com