Home Coins Bitcoin (BTC) Bitmex Fast-Tracks KYC Program as Regulators Tighten Screws on Anti-Money Laundering Rules

Bitmex Fast-Tracks KYC Program as Regulators Tighten Screws on Anti-Money Laundering Rules

- Advertisement -


Bitmex said Wednesday that it is fast-tracking its user verification program in order to comply with regulatory requirements. Users must now be fully verified by Nov. 5, 2020 “to continue trading on the platform,” it said.

In a statement, the crypto derivatives exchange stated that “unverified users will not be able to open new positions” after this date. They will also “not be able to withdraw funds from their Bitmex account without completing verification” beginning Dec. 4.

The accelerated verification means Bitmex’s mandatory know-your-customer (KYC) process – first announced Aug. 28, 2020 – will now close three months earlier than originally scheduled. Initially, it was slated to end February 2021.

Bitmex may have been pressured into action by the charges it faces in the U.S. The exchange was recently charged by the U.S. Commodity Futures Trading Commission (CFTC) for operating illegally and for “failing to implement required anti-money laundering procedures.”

At the same time, the Department of Justice (DoJ) indicted former chief executive officer Arthur Hayes and his leadership team for “violating the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act.”

“Recent events have underscored the requirement for market operators to implement robust and compliant KYC programme,” Bitmex said.

As part of the exchange’s KYC procedures, individual users are prompted to upload a photo ID and proof of address, take a selfie, and answer several questions that relate to the source of their funds and their trading experience. Bitmex says this takes approximately five minutes to complete, and more than 50% of its users have since completed the process.

By Nov. 5, Bitmex customers will need to have completed verification in order to open a new position or to increase an existing position. Existing open positions can be maintained or reduced by unverified users, although pending orders that would increase a position will be cancelled, it said.

After Dec. 4, “if there are remaining open positions on unverified accounts, we will review these…and communicate directly to users holding these to facilitate an orderly closing of these positions.”

Crypto exchanges are under pressure to implement stringent KYC procedures, as regulators around the world seek to align with anti-money laundering recommendations from the Financial Action Task Force (FATF).

What do you think about Bitmex’s accelerated KYC processes? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,555FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.34
CHF
1.11
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

Eth2 withdrawals are coming sooner than you think

Withdrawals for Ether staked on Ethereum 2.0 could become available as early as Q1 2021, according to a blog post by staking service...

Reuters runs the headline Bitcoiners have longed to read

The U.S. Dollar Index fell sharply today, extending a 10 month losing streak that places it at the lowest point since April 2018. International news...

Ethereum Scalability Solutions, Connext and Stakenet | XSN Research | by Shahab Behzadi | Dec, 2020

There have been many attempts at upgrading blockchain infrastructure, with the very first one being Lightning Network, which is arguably as old as...

Ethereum’s market cap surpasses GM, CME, and tech stocks — What’s next?

2020 has been an impressive year for the Ethereum network and Ether (ETH) price. In November the Eth2 deposit contract quietly launched and before...
bitcoin
Bitcoin (BTC) $ 18,608.95
ethereum
Ethereum (ETH) $ 583.80
ripple
XRP (XRP) $ 0.604914
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 289.05
bitcoin-cash-sv
Bitcoin SV (BSV) $ 168.89
litecoin
Litecoin (LTC) $ 84.98
eos
EOS (EOS) $ 3.01
binancecoin
Binance Coin (BNB) $ 30.03
okb
OKB (OKB) $ 5.22
tezos
Tezos (XTZ) $ 2.32
leo-token
LEO Token (LEO) $ 1.37
cardano
Cardano (ADA) $ 0.152387
monero
Monero (XMR) $ 127.41
stellar
Stellar (XLM) $ 0.180715
chainlink
Chainlink (LINK) $ 13.41
huobi-token
Huobi Token (HT) $ 3.98
tron
TRON (TRX) $ 0.030214
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 103.09
neo
NEO (NEO) $ 17.63
iota
IOTA (MIOTA) $ 0.325832
nem
NEM (XEM) $ 0.187508
zcash
Zcash (ZEC) $ 74.49
maker
Maker (MKR) $ 537.86
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 6.25
vechain
VeChain (VET) $ 0.014792
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 4.46
kucoin-shares
KuCoin Shares (KCS) $ 0.816743
waves
Waves (WAVES) $ 6.80