Wednesday, August 21, 2019

Bitmex Denies Ditching North American Clients Amid Regulatory Pressure

Cryptocurrency trading platform, Bitmex has denied media report circulating all over the world that the exchange was shutting down its account in the United States and Quebec in Canada due to regulatory pressure.

Major Mistakes in the Report

Major news outlet early in the news reported that Bitmex was shutting down major accounts in North America, particularly accounts in the United States and the Quebec area in Canada.

In a toe to toe explanation, Bitmex highlighted that there were as many as six major errors in the report, which was first published by South China Morning Post, an English Newspaper based in Hong Kong.

South China Morning Post claimed in their report that Bitmex was aiming to stop traders from the Quebec area in Canada due to a heap of regulatory pressure. In early 2018 financial regulatory agency Autorite des marches financiers (AMF) sent a letter to the exchange indicating that the agency did not register in the Quebec province and as such deemed their operation illegal.

The regulatory agency reportedly told South China Morning Post that all Bitmex Quebec accounts had been subsequently closed. The news agency further alleged that Bitmex was stepping up restrictions on US accounts in light of escalating enforcement actions from the United States regulatory agencies.

SCMP Report Not Accurate

In a rebuttal issued to CT Japan, Bitmex claimed that the exchange platform has put an embargo on all US Traders since 2015 and has been closing accounts since basic guidance was obtained by US regulatory agencies, citing the Commodities and Trading Commission (CFTC) in particular.

“BitMEX has always retained the right to close [accounts] where any BitMEX trading participant has given false representations as to their location or place of residence. This has been a normal part of our process.”

Bitmex further explained that the only difference in 2018 was the use of warning banners and other avenues to notify new users of its new protocol and basic guidelines.

Related Article:  U.S. Chamber Of Digital Commerce Encourages Financial Regulators To Boost Blockchain Innovation

Bitmex did not comment on the claim by AMF but directed CT Japan to its terms and conditions which it said have always had the following wording in place, based on the office of Foreign Assets Control (OFAC) list from the United States Department of Treasury.

A report by BTCNN in late last year revealed that Bitmex had developed a website for monitoring Bitcoin Cash Hard Fork. The website forkmonitor.info will mainly handle Bitcoin and Bitcoin Cash, and will further expand its horizon as time goes on.

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