BitMEX to Extend Restricted Access to 3 More Jurisdictions

Crypto derivatives Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term BitMEX has decided to restrict access to its platform for three more jurisdictions - Hong Kong, Bermuda, and Seychelles.

Per Monday’s announcement, the decision has been taken pro-active steps to ensure the safety of funds and stability of the exchange.

BitMEX is registered in Seychelles and has business arms in both Hong Kong and Bermuda. The restriction of access by the exchange’s parent company HDR Global Trading Limited will ensure the non-involvement of BitMEX employees in trading activity on the platform.

“The increased involvement of regulators with all the major players in the industry is not only to be expected, it is to be welcomed. It is the mission of good regulators to ensure that honest citizens are not being cheated,” the official announcement stated.

“For this reason, we have decided to restrict access to BitMEX for users in the jurisdictions in which HDR-affiliated employees and offices are located.”

With this, the count of BitMEX’s restricted jurisdictions has become 11 as the list already includes the United States, the province of Québec in Canada, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, and Sudan.

Still offering services to restricted jurisdictions?

The move by the crypto derivatives exchange came when a Bloomberg report revealed that it is under investigation by the Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) for the continuation of its services in the United States.

BitMEX does not hold a mandatory license from the futures regulator in the US to offer its services in the country. However, its chief executive Arthur Hayes revealed in January that it is possible for traders based in the country to spoof their location to trade derivatives.

Meanwhile, BitMEX is also facing some silent aggression from its customer base, as in July, $524 million in funds were taken out, making it the highest monthly outflow from the platform.