Popular Seychelles-based crypto derivatives trading platform, BitMEX has announced that it is closing its platform to three jurisdictions. The announcement was made in other to ensure the safety of its customers’ funds as well as the stability of the platform.
According to the official announcement, the regions affected by the restriction include Seychelles, Hong Kong, and Bermuda. Customers of the derivative trading platform based in these three listed regions will not be able to continue accessing the platform’s services. These three jurisdictions are where BitMEX parent HDR Global Trading Limited’s users and offices are located.
According to the official announcement,
“This change will have no financial impact on the business and will affect very few people. The BitMEX team will be reaching out to those who are affected,” the firm said in a statement. BitMEX also added that the firm welcomes the involvement of regulators in the cryptocurrency industry and that regulators will provide “a new era of legitimacy for cryptocurrency exchanges: a future where market operation standards are clearly stated and maintained, where security is paramount, and where financial reserves are independently and frequently audited.”
This comes after reports that the U.S. Commodity Futures Trading Commission (CFTC) is probing the firm to determine whether it went against regulations in the form of servicing US traders. BitMEX is not registered with the CFTC and counts the U.S. as one of the jurisdictions in its restricted access list.
The Genesis Of The Situation
This news is rather expected than a surprise to anyone who followed the derivative exchange’s tangle with popular economist and crypto antagonist, Nouriel Roubini about a month ago. BitMEX’s CEO, Arthur Hayes was engaged in a debate with Roubini in Taipei along with discussions focussing on cryptocurrencies.
Thereafter, Roubini ramped up a campaign against BitMEX which then led to CFTC investigating the trading platform. In the days following the events, BitMEX had experienced a huge outwards funds flow and the daily trading volume had dropped drastically. The platform’s social media also stopped updating.