BitMex, Hongkong-based Bitcoin futures exchange is discontinuing its services to customers in the U.S. and Quebec. This move is attributed to the strict regulations in both regions especially on companies in the industry that have not been licensed, according to a media on January 15.
U.S. and Quebec Financial Regulators Force Bitmex Out of Business
Currently, the U.S. Securities and Exchange Commission (SEC) is yet to make comments if it had a hand in Bitmex’s move. However, it can be assumed that their actions towards members of the industry in 2018 may have triggered it. An instance is the case of Zachary Coburn, Etherdelta’s CEO who was fined in November for operating an unlicensed exchange.
Quebec’s authorities, on the other hand, did not leave much to the imagination. They outrightly stated that Bitmex is operating illegally. Therefore, the Autorité des marchés financiers (AMF), the country’s financial regulator sent a letter to the exchange as an order for its discontinuation of service in the region.
AMF’s director of media said:
BitMEX is not registered with the AMF and is therefore not authorised to have activities in the province of Quebec. We informed this company that its activities were illegal.
Traders in Other Countries Asked to Stop Trades
Before this time, it was revealed that from the fourth quarter of 2018, some customers were asked to stop trading on the platform. These were specifically people in regions such as Iran, Sudan, North Korea, Cuba, Syria, and Sevastopol which BitMEX said were unapproved jurisdictions.
BitMEX cryptocurrency exchange is reportedly the company whose monthly rent for office space is the highest in Southeastern China region. Its rent of $600,000 has been called a drop in the sea given that its website publicized a yearly turnover of $965 billion in 2018. Nevertheless, the virtual assets company has troubles of its own given the development that is about to take place.
Cryptocurrency Enthusiasts Turn to Bitmex After Falling Rates
Based on reports, many crypto enthusiasts had resorted to using the platform for the trade of Bitcoin futures contracts after the price of Bitcoin fell significantly in 2018. In the same vein, the Asian market contributed a large part of the revenue generated by the HongKong company. Despite this, the U.S. market is where Bitmex gained rapid popularity.
BTCNN on July 26 also informed that Bitmex has just recorded its highest 24-hour trading volume. This was 1 million units of Bitcoin in comparison to its previous milestone of 800,000 units of Bitcoin.